Landslide win by Democrats will bring stock market in line with internals of the economy – 40% correction?
Marla Guthrie
Nov. 8, 2006

The disconnect is so deep that the stock market can correct as much as 40% over the next two years. The easy money with huge tax cuts for the rich made the stocks go up with largest ever divergence between the common stocks and thirty Dow Jones Industrial Average.

While Dow made a new high but the Nasdaq that represents the common stock – the heartbeat of the American economy has merely budges to 2350 while the all time high in 2000 was above 5000.

Now that oversight of Administration is in place, fiscal responsibility is hopefully back and the middle class is allowed to participate, the stock market will have to readjust. The super profits from sending jobs to India and China will have to roll back. The oil companies will have to justify their actions. The financial services companies will be held responsible for their less than accurate statements in gaining access to common people’s check books.

A sharp fall in stock market is expected as underemployment is corrected in the economy.

Landslide win by Democrats will bring stock market in line with internals of the economy – 40% correction?
Marla Guthrie
The disconnect is so deep that the stock market can correct as much as 40% over the next two years.
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A buying opportunity for Health-insurance providers and drugmakers
Joe Weinman
The temporary drop in price related to landslide win by Democrats is just a buying opportunity.
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The underemployment, budget deficit and inflation bullish for Gold
Sam Adelton
As long as underemployment and inflation alive, Gold will be going upwards. Underemployment puts an artificial lid on the long bond rates. The inflation make Gold favored over currencies
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The effect of Democratic Senate and House on stocks, bonds, commodities, currencies and Gold
Peter Oberois
If Democrats can win both the legislative branch of the Government, bonds will rally, Gold will sump, dollar move higher slowly and stocks say where they are.
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University of Michigan confidence index pointing to an increasing level of anxiety among the consumers
Sam Adelton
On Nov 9 around 10 AM EST, a very important data is going to come out. It is the University of Michigan confidence index. The market expects 93.4 from previous report of 93.6.
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Japan wants to secure petroleum supplies from Iraq
Media Release
Japan, which imports 90 percent of its oil from the Middle East, is looking to develop the East Baghdad, Gharraf and Tuba oil fields, as well as perhaps the Nassiriya field.
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Bill Gates bids $3.7 billion bid for Four Seasons Hotels – a sign of desperation of Microsoft or the start of a bear market?
Joe Weinman
When people who are non-experts in certain trade make bids to acquire largest in that trade, two things could have happened. Either Microsoft is in deep trouble.
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