People don’t invest in future growth if they expect failure.Of course, an economy cannot be run only on positive sentiment, but that is still definitely a part of the picture. And today’s stock rally after the debate last night gives us a hint about how Obama-pessimism has been affecting the markets.
Up until last night, virtually everything in the mainstream media told us that Romney was losing and Obama was winning. More than that, the media made it seem as if Romney couldn’t campaign and didn’t know what he was doing.
At the same time, the media is desperately looking for good economic news, thinking that will help Obama win. It seems quite obvious that Bernanke is trying to revive the economy for the sake of Obama’s re-election.
The results of all this have been rather underwhelming.
Then Romney gives us an electrifying win in the debate and suddenly the S&P jumps higher!
Considering stocks have been higher all day despite a dearth of catalysts, some market participants are pointing to Republican candidate Mitt Romney’s perceived victory over President Obama in last night’s debate as a potential catalyst for the rally… The Dow recently rose 91 points, or 0.7%, to 13583, a fairly sizable move compared to the recent action over the last few weeks Bank of America BAC +3.29% Alcoa AA +3.30% and J.P. Morgan JPM +2.35% are leading the blue chips higher. The S&P 500 is up 0.7% to 1462, with the financial and energy sectors among the top performers.
The Left has tried to persuade readers (mainly their own choir) that this is a coincidence. But there is no way to make this convincing when coal suddenly jumped higher after suffering greatly during the Obama years. For example, a blogger for Barron’s tried to be skeptical: “Maybe. And yet Romney’s pro-coal views were not exactly a secret before the debate.” No, the likelihood that Romney is going to win was being kept a secret before the debate! That’s the point. Suddenly many people who were feeling hopeless became hopeful and increased investments.
This rally provides indirect evidence in favor of Romney’s economic policies. But it provides direct evidence that the Obama regime has been, in substance and/or style, discouraging investment. For all the talk of hope and change, he has killed hope for the people trying to save and invest. Rather than change, the economy has been flat, even though he started his presidency “on the ground floor.” The Romney Rally shows us what could have been; it reveals the Obama slump.
The media will continue to try to deny this connection. If it lasts, they will probably try to find some way to give credit to Obama.
All you have to do is watch Chris Matthews as Gollum screaming after the Ring of Power to see that the Left would gladly sacrifice prosperity for keeping their man in office. As he says, the long knives are out.