No, I am not talking about November and the start of the seasonal sweet spot for equities. Although, selling in May and going away - far away - sure would have been the right move.
I am talking about the election. And the two-year buildup where we spent - some might say wasted - so much mental capital that we are collectively exhausted. Just over one day from when I am writing this, we will know who will be the new patsy, er, commander in chief who is charged with getting this economy back on track. I am glad it will not be me but then again, if you just let nature take run its course the economy would do the job all by itself.
How's that 700 billion dollar handout, er, bailout, er, rescue package doing? Ask bank shareholders who just got paid their dividends and they will say, "just fine." Ask AIG's travel agent and you'll get the same answer. I am actually wondering if I will be able to lease a new car when my current lease expires in a few months so don't ask me how its going. Don't ask homeowners or business owners, either. Yes, I know it is too soon to see real effects but we need it now, not later.
Meddling in the free market always backfires, no matter how good your intentions may be.
But back to the election. Why am I glad it is just about over? Because the market hates uncertainty and it does funky things when it is unsure. When we know who will be President and his Veep, no matter who wins, everybody can start to accept it and move on to their own little worlds - of business, spending and saving. And the market can get its act together.
Yes, there are other issues in this election but from the standpoint of this blog its the economy, smarty (I won't call my readers stupid).