John Bull
October 31, 2008
In "Bear Market Obama", published on October 23, 2008, we said that "as Barack Obama's poll numbers go up, the stock market goes down".
The Dow Jones Industrial Average closed at 8691.25 on that day, and Obama led John McCain in the national polls by about 11%.
The next day, October 24th, the market plunged to an intraday low of 7882.51 as it shuddered in anticipation of Obama's socialist redistribution of wealth policies and the economic depression they would cause.
Since then, John McCain has finally begun to communicate to the American people the fact that Obama's "tax cut" would actually take money from the middle class and give it in the form of a welfare check to people who don't pay income taxes at all.
Americans don't want to return to the welfare state of Lyndon Johnson and Jimmy Carter.
As a result, the polls have narrowed to only a 3 point lead for Obama as of October 30th.
While McCain was climbing in the polls, investors began to take heart that he could actually win this election, and the Dow Jones Industrial Average climbed to 9,180.69 as of yesterday's close.
The lesson: As Barack Obama's poll numbers decline, the stock market rises.
What's bad for Obama is good for America.
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If McCain wins and can prevent the Democrats from raising taxes, the economy and the stock market will recover over the next twelve months and the economy will enter a new period of expansion based on a sane energy policy and a housing recovery.
It's an easy choice.
Bear Market Obama, or John Bull.