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July 30, 2012

Red Horseshoe Loves Red Star?: Wall Street Now Betting On Romney Victory?

Strangely enough, of course, a Romney Rally coming before the election can work to improve Obama's standing, and then, of course, result in an Obama victory, thus demolishing the very reason for the Romney Rally.

With just 100 days left until the U.S. presidential election, investors are beginning to make bigger bets on which candidate will carry the day.

One analysis concludes that last week's sharp three-day market surge can only mean that Wall Street is banking on a victory from Republican Mitt Romney.

That's the logical interpretation one can draw from a rally amid conditions that otherwise would demand a selloff, Morgan Stanley chief U.S. equity strategist Adam S. Parker said in an analysis that asserts there is no other reason now to like stocks than a Romney win.

That said, note the item in the sidebar about Obama overperforming in swing states, and on FoxNews, Rove just said three states (Nevada, Ohio, and Colorado) shifted from "Toss Up" to "Lean Obama."

Ohio looks worse for us every cycle. This may be a cycle where we do in fact lose it, and will need one of the emerging red states to overcome that big blow.


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posted by Ace at 06:35 PM

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