Graphic from the NY Times.
Good news for the economy means bad news for the Democrats. You can count this as bad news for Democrats:
Wall Street rode fresh evidence of a resurgent economy to its best finish in a year Monday. The Dow Jones industrials surged 201 points and all three major indexes posted the highest close since last summer.
The DOW isn’t everything, and unemployment is most assuredly an issue, but it appears that things are looking up for the economy (which I have been on record repeatedly saying that I did not feel the economy was as bad as people were making it out to be).
Stocks have rallied for three months as investors bet on an economic recovery by year’s end. Some analysts believe the market is firmly in an upward trend, citing improving corporate profits, although others believe stocks are due for a major pullback after advancing so quickly.
Since hitting a low for the year on March 11, the Dow is up about 24 percent, the Nasdaq higher 31 percent and the S&P is up 26 percent.
“The market is a bit overbought and has been for a few weeks now,” said Michael Sheldon, chief market strategist at Spencer Clarke LLC. “However, it appears the path of least resistance is higher for the moment. … As long as the economic news continues to gradually improve, it seems like equity prices most likely have further upside in the next six to 12 months.”
Whatever happens, it appears we have a bumpy road ahead of us. Cross your fingers and buckle your seat.
Brian
Unemployment is high only in comparison to the last few years. Compared to Europe our unemployment rate is staggeringly low.
Dan
John,
I fail to see how a strong stock market can be so easily translated politically. Do you imagine Dems praying for a stock market collapse?
In fact, I envision the market going a lot higher; When the bond market starts getting hit, which will be soon, they’ll be an AVALANCHE of money into stocks. There are many value stocks left in the market here……..
John Cole
You must have forgottne all the Democrats making hay out of the falling market during the early parts of the Bush presidency. I remember numerous statements such as “millions of people savings and portfolios were wiped out” and “even Wall Street is afraid of the Bush presidency.”
Hell, it doesn’t take long to search Yglesias’s site for five or six ham-handed assertions that ‘Republicans are bad for the market.’
Dan
A bullish stock market is good for EVERYONE, John. Period. No need to make everything a political litmus test.
John Cole
A bullish stock market is good for EVERYONE, John.
I know- which is why this is bad for Democrats that the stock market is rebounding with a REPUBLICAN in office. I am not making this a litmus test.