Procreant:
<<Everyone from CNNfn to QuadK is mentioning the Lewinsky deal as a contributor to latest market
decline. This would imply that Mr. Clinton is somehow directly responsible for our healthy economy.>>
While I'm not a fan of Clinton, he has been relatively friendly to the economy if you look at the recent budgets passed (they have cut a lot of fat out of the Federal employees budget, defense, etc). That said, you are right, he has very little direct correlation to the strength of our economy recently. As many know, its low inflation, low interest rates, and higher employment along with the restructuring of businesses during the Reagan and Bush period that has paid off.
What I really was implying with the Lewinsky deal, is it can create a perception of more "uncertainty" in the eyes of foreign investors of US stocks and bonds, as well as another excuse for US fund managers to pare more of their stock holdings. Ultimately, yes, its the condition of the economy [productivity, low interest, low inflation, healthy spending, technology growth (internet, IT, etc)] that will keep the bull market intact. Obviously, Asia (Japan), weak corporate earnings, and possible increase in interest rates are the cause of recent selling in the market.
Regards,
QuadK |
