Good Morning All,
Our wish list for the week appears to have been fulfilled and its only Wednesday as New York and Toronto markets respectively gained 950 and 1700 at their best Monday,Tuesday levels, not quite matching our plus 1000 and 2000 predictions of Monday morning but close enough considering the fact that we were likely alone in the world in suggesting such an explosion. These rises were naturally met with serious profit taking as both markets gave up some of their gains as the day wore on, a condition that will predominate today's trading as well. Although we also won our political wish as the Canadian electorate in its infinite wisdom prevented a Harper majority, I was still left to wonder how a plurality of my fellow citizens could vote for a bunch of Bush apologists who have likely become converted "Palinistas".
Initial reaction aside, the market judgement of the restoration package will be withheld for the near term as major investors watch LIBOR and the TED spread in order to monitor its "on the ground" effect. You need not pay too close attention to such intricacies as the indexes will quickly explain any good or bad news. The numbers will speak.
An article appearing in yesterday's New York Times by Tommy McCall described the performance of stock markets under Republican and Democrat administrations beginning in 1929. If you do not include the crash incumbent Herbert Hoover the business friendly Republicans had a plus 4.7% record versus a positive 8.9% for the "socialist pinko" Dems. If Hoover's 4 years are included the free enterprising GOP slips to a marginally positive 0.4 %. Don't bother working out the compounding effect of the comparison just google the chart.
Tonight's debate will likely be as dull as the others, barring a crash and burn performance by either candidate. Maybe its just because I am so strongly pro Barack that I have such a melancholic foreboding of these final campaign weeks or maybe I am justifiably fearful of nasty Republican tactics and redneck Joe Six Packs armed to the teeth and smitten by Sarah.
If any of you wish to opt out of this letter please advise, I shall try to remain unhurt by your choice.
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