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The Election and the Markets: One Advisor's View

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I cannot think of a recent Presidential election which has elicited as much passion as this one. Furthermore, I cannot recall two candidates with such polar opposite views as President Obama and Gov. Romney. I’d have to agree that this is the most important election in modern history!

If you remove the personalities, media portrayals  and sound bites, and look only to their views on the relevant subject matter, I cannot fathom how anyone would care to vote for a candidate that favors big government over small, greater redistribution of wealth, and higher taxes. Think of it. A vote for a candidate with these views is tantamount to saying, “Government, please take more of my hard-earned money and use it for whatever purpose you deem necessary.” Bigger government requires more tax dollars to operate. The only group of people that should favor this approach are those who are less inclined to get out and work hard to become successful. Am I missing something here? 

In the course of this election, there have been many charges levied against the candidates. Often, these charges are utterly false. It’s reminds me of the person who is interviewing for a job in an advertising agency. The interviewer asks if he has ever lied in the course of business and the prospective employee reluctantly drops his head and says, “Yes.” At this point, the employer says, “Perfect. You’re hired.” Exaggeration? Not by much. It’s smacks of something on The Twilight Zone or The Alfred Hitchcock Hour. Ok, you get my point (beyond logic). 

How will the financial markets react? Well, that’s anyone’s guess. I can easily see a Romney victory helping businesses, and hence, stock performance. I could easily see an Obama victory cementing the idea that higher taxes, more debt, more regulation and more inefficient spending (e.g.: “Solyndra”) will follow. No matter the outcome, I do expect some of the uncertainty to recede as businesses will finally know the rules of the game. 

Whatever the case, I agree with Obama that America needs more education. Education yes, but not indoctrination. Critical thinking, elbow grease, and other such useful items are in short supply. Contrary to the belief of some, these cannot be purchased off the shelf at Walmart. Rather, they are achieved through hard work and careful thought. 

Sorry for the dim view. I promise to be more upbeat next time!


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