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Gold/Mining/Energy : GOLD-XAU -- Ignore unavailable to you. Want to Upgrade?

To: Larry Haraksin who wrote (1327)	2/19/1998 11:17:00 PM
From: Lalit Jain	Respond to of 1756

Larry, How do you think the current Whitehouse affairs will effect the POG ? Here is the past performance of the stock market, as analysed by Martin Anderson on the Nightly Business Report today. Presidential Scandals & The Stock Market LINDA O'BRYON: In tonight's commentary, Martin Anderson, senior fellow at the Hoover Institution of Stanford University looks back at presidential scandals and the stock market. MARTIN ANDERSON, COMMENTATOR: Well, people are saying that become the economy is so good and the stock market is so high, that no one cares about the sex scandal rocking the Clinton White House. But the question is, can a serious presidential scandal affect the stock market? Maybe history can give us some clues. What happened to the stock market during President Nixon's Watergate scandal and during President Reagan's Iran/Contra scandal. The answers are not very comforting. During the 2 1/2 year run in the Watergate scandal, the stock market lost about 40 percent of its value. When the Watergate burglary took place in June of 1972, the Dow Jones Index was close to 1000. For over a year and a half, the market held its own. Then in the fall of 1973, as the scandal intensified, the market began to slide, dropping like a stone to around 600 after Nixon was forced to resign in August of 1974. President Reagan's stock market fared a bit better, although it was marked by extreme volatility. When the Iran/Contra scandal began to break in early 1986, the Dow Jones was around 1800. During the next year and a half, it rose 800 points, almost 2600. Then suddenly, October 1987, the stock market crashed, dropping over 30 percent in a few awful days. The market finally leveled out but stayed depressed for another full year. A presidential sex scandal, laced with charges of perjury, witness tampering and the obstruction of justice, may not offend your moral sensibilities, but it could damage your pocketbook. I'm Martin Anderson. Excerpts from the Nightly Business Report. Regards, Lalit Jain