Santorum sell-off
The Republican race looked pretty much wrapped up with Romney as the candidate. The recent surge by Rick Santorum as caused the markets to go flat for most of February.
Two points I would like to make.
First is that Small and Mid Cap stocks are just now catching up to Large Cap stocks, so take advantage of any sell off by buying beta.
The economy is stabilizing, China is easing, domestic employment is expanding all good signs that gives this investor the confidence that the markets have healed their worst structural problems. Can the recent trends be disrupted, ABSOLUTELY and while many figure it will be Iran or North Korea, I think it will be here in the good ole US of A.
I call it the Santorum Sell Off! The markets where comfortable with Romney as the Republican candidate. He has the right mix of elected leadership skills but also understands the private sector. The markets are not made up of conservative voters, it is made up of a broad section of society and the one thing that scares market participants the most are excessively conservative candidates who are more about managing the public's personal life than managing defense, transportation and the wasteful Federal spending.
As Santorum gains the markets will lose. Why? Because with Santorum as the Republican nominee, it almost assure four more years of President Obama. America does not want a elected people telling them how to live, what is good/bad, or how their personal relationships should be. The American electorate is mostly moderate and does appreciate those who don't respect a fundamental saying "Don't Tread on ME".
The next month will determine if this current thesis is correct or not, but if it is, use it as a buying opportunity, buy Beta, because in the long run, Republicans can tolerate a moderate candidate, but America cannot - will not tolerate a conservative one.
Two points I would like to make.
First is that Small and Mid Cap stocks are just now catching up to Large Cap stocks, so take advantage of any sell off by buying beta.
The economy is stabilizing, China is easing, domestic employment is expanding all good signs that gives this investor the confidence that the markets have healed their worst structural problems. Can the recent trends be disrupted, ABSOLUTELY and while many figure it will be Iran or North Korea, I think it will be here in the good ole US of A.
I call it the Santorum Sell Off! The markets where comfortable with Romney as the Republican candidate. He has the right mix of elected leadership skills but also understands the private sector. The markets are not made up of conservative voters, it is made up of a broad section of society and the one thing that scares market participants the most are excessively conservative candidates who are more about managing the public's personal life than managing defense, transportation and the wasteful Federal spending.
As Santorum gains the markets will lose. Why? Because with Santorum as the Republican nominee, it almost assure four more years of President Obama. America does not want a elected people telling them how to live, what is good/bad, or how their personal relationships should be. The American electorate is mostly moderate and does appreciate those who don't respect a fundamental saying "Don't Tread on ME".
The next month will determine if this current thesis is correct or not, but if it is, use it as a buying opportunity, buy Beta, because in the long run, Republicans can tolerate a moderate candidate, but America cannot - will not tolerate a conservative one.
Posted by Bradley Fluetsch at 2/20/2012 8:04 AM 
Categories: Speculation
Tags: Romney Santorum Obama stock invest retire pension
Categories: Speculation
Tags: Romney Santorum Obama stock invest retire pension
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