There has been a psychology on the Street for several years that the fortunes of the Clinton Administration are driving this market. That could lead to much down volatility as news turns against Clinton over the next several weeks/months. Some even say that, when Starr puts it all out, this administration will be a distant memory.
Well, everyone has their own political opinions, BUT WHAT WILL THIS DO TO OUR MONEY??!!??
Best now to know a little history, economic and otherwise:::::::
A) Sitting presidents don't move markets in the medium to long run. That is simple, provable, and usually forgotten fact. True, their policies often move economies, and frequently move them for years after they are gone. But markets are another matter.
B) Dow Jones publications love those "nifty fifty" comparisons. OK, I'll give you the early seventies again, provided that we first do the following simultaneously::::
1) Lose a war.
2) Debase the dollar all to Hell.
3) Suffer an energy crises with gas lines and the whole enchilada.
Until then, I suggest you stay in the markets.
We may have one of those summer storms where the DOW drops 10-12%, but there's no economic or valuation basis for anything more. And it might be best if Wall Street got out of this "Clinton raised all my stocks" funk because-at the very least, he's on the street in January, 2001. And the market opens as usual the next day... |
