Friday, August 31, 2012

Obama or Romney? Markets do not care

Will the markets feel better under Romney or under Obama? Many analysts think that there is no difference.

Of course, despite who wins in November, he will have to determine economic prospects of the country, cope with financial crisis, healthcare issues and many other crucial problems. Barack Obama and Mitt Romney are major contenders to the presidency but both of them do not have much influence on the markets.

It is hard to foresee how the market will behave in this or that case. There are too many of long term tendencies and factors which could not change the market direction just because there are some changes in the White House.

It is obvious that the elections will be predetermined by the problems in the country of that period. Investors from the both of sides admit one thing about the taxations: they must grow. However, who is going to pay more is not known yet.

Some experts note that political leaders of the country seem not to be able to compromise. Better not to think about the consequences of such behavior. Nevertheless, you can be sure that the economists of the Republican Party or democrats think that their ideas will be prosperous for the country while the actions of their opponents will lead to the crush.

Stock market correlates with profits and dividends and mainly depends on the business activity which is hard to predict. It is vital that the government will be able to create commercial benefits.

No comments: