Sunday, November 2, 2008

Election Won't Have Long Term Impact

From AP writer Madlen Read:

[I]nvestors shouldn't get too caught up in the market's short-term reaction after the election results. The Dow surged, for example, after President Hoover was elected in 1928 — and the next year the it crashed, ushering in the Great Depression.

If the next two unemployment reports show increased layoffs, they will overshadow any election results. If you are a pessimist who believes the market has already priced in an Obama election and is due for another technical bounce, one short-term strategy might be to buy now and then sell in mid-January 2009. Personally, I am overweight tech stocks.

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