Thursday, October 9, 2008
Why So Serious?
Is this market crash only about the financial crisis or are there some new factors in the equation?
Wall Street is watching the polling data as closely as any political junkie and they see the 8 point lead as a serious break in the race. This means that it is time to evaluate the impact of Obama's policies as they relate to money flow and future investment strategies to avoid the higher capital gains tax and doubled capital gains tax that will start early next year. That plus the fevered anti-capitalist zeal in Washington these days are going to mean that investors will be forced into other investments if they want returns on their investments. This set up has always led to lower markets and I think the market is taking this into account right now.