Post-Election Wrap Up: Economy and Investing
I visited with my friends Jose Guinan and Mike Iscovitz at Fox News about the effects on the economy and the markets now that the election is over. With nothing really changed in terms of the Administration's make up the continuation of gridlock is likely to prove a problem for both economic growth and the stock market as the lack of action of the fiscal policy front leads to weaker economic growth.
As discussed in "The Next Four Years Won't Be As Good As The Last" I stated that the "One thing that has been overlooked on many fronts is that Obama had control of the House and the Senate when he first entered office in 2009. This control lead to the passing of ObamaCare, successive bailout programs for housing, automobiles, and the financial industry which flooded the economy, and financial markets, with dollars - a lot of dollars. Those injections, combined with a massively bombed out economy from the financial crisis, led to a sharp rebound in economic growth which was almost entirely centered around inventory restocking and a resumption of exported goods and services.
However, in 2010, Obama lost control of the House to the Republicans which has led to two subsequent years of political gridlock. That gridlock has resulted in very little progress in providing the fiscal policies necessary to support economic growth."