Why does the market LOVE Obama?

[Navin Johnson]

The market loves sequestration. The S&P 500 has increased about 13% since sequestration became law on August 2, 2011 (Budget
Control Act of 2011).

The market loves Republican control of the House of Representatives. The S&P 500 has increased about 23% since January 2011.

 

[Tsing Tao]

Quote from Navin Johnson:

The market loves sequestration. The S&P 500 has increased about 13% since sequestration became law on August 2, 2011 (Budget
Control Act of 2011).

The market loves Republican control of the House of Representatives. The S&P 500 has increased about 23% since January 2011.

Exactly. Correlation vs. causation, and all that.

 

[pspr]

Quote from Navin Johnson:

The market loves sequestration. The S&P 500 has increased about 13% since sequestration became law on August 2, 2011 (Budget
Control Act of 2011).

The market loves Republican control of the House of Representatives. The S&P 500 has increased about 23% since January 2011.

I think we had that little dip when Obama was out trying to scare the crap out of everybody about Sequestration. Then when it happened and everybody realized what a liar Obama is, the market snapped back to the trend which was the QE rally mode - at least until the Fed has second thoughts or until the next fiscal cliff arrives.

 

[tomdavis]

Quote from Navin Johnson:

The market loves sequestration. The S&P 500 has increased about 13% since sequestration became law on August 2, 2011 (Budget
Control Act of 2011).

The market loves Republican control of the House of Representatives. The S&P 500 has increased about 23% since January 2011.

The stock market loves my daughter. She invested some of her savings and the market's been going up ever since. It's obvious that she has supernatural powers. There's no other possible explanation.

 

[pspr]

Quote from tomdavis:

The stock market loves my daughter. She invested some of her savings and the market's been going up ever since. It's obvious that she has supernatural powers. There's no other possible explanation.

Post her signals, please.

 

[Petsamo]

MarketMasher is another one of those useful idiots who credits Obama for the good, but doesn't blame him for the bad.

 

[Ricter]

Quote from Petsamo:

MarketMasher is another one of those useful idiots who credits Obama for the good, but doesn't blame him for the bad.

That's like you, only reversed.

 

[Arnie]

So.....

It's not Bush's fault (or should I say credit)?



Face it, if the market were going down, the left would still be blaming Bush.

 

[MarketMasher]

Quote from Petsamo:

MarketMasher is another one of those useful idiots who credits Obama for the good, but doesn't blame him for the bad.

+100

I agree! What a fkin' idiot...

 

[PiggyBank]

Quote from Max E. Pad:

The Last Time The Dow Was Here...

"Mission Accomplished" - With CNBC now lost for countdown-able targets (though 20,000 is so close), we leave it to none other than Jim Cramer, quoting Stanley Druckenmiller, to sum up where we stand (oh and the following list of remarkable then-and-now macro, micro, and market variables), namely that "we all know it's going to end badly, but in the meantime we can make some money" - ZH translation: "just make sure to sell ahead of everyone else."


Dow Jones Industrial Average: Then 14164.5; Now 14164.5
Regular Gas Price: Then $2.75; Now $3.73
GDP Growth: Then +2.5%; Now +1.6%
Americans Unemployed (in Labor Force): Then 6.7 million; Now 13.2 million
Americans On Food Stamps: Then 26.9 million; Now 47.69 million
Size of Fed's Balance Sheet: Then $0.89 trillion; Now $3.01 trillion
US Debt as a Percentage of GDP: Then ~38%; Now 74.2%
US Deficit (LTM): Then $97 billion; Now $975.6 billion
Total US Debt Oustanding: Then $9.008 trillion; Now $16.43 trillion
US Household Debt: Then $13.5 trillion; Now 12.87 trillion
Labor Force Particpation Rate: Then 65.8%; Now 63.6%
Consumer Confidence: Then 99.5; Now 69.6
S&P Rating of the US: Then AAA; Now AA+
VIX: Then 17.5%; Now 14%
10 Year Treasury Yield: Then 4.64%; Now 1.89%
EURUSD: Then 1.4145; Now 1.3050
Gold: Then $748; Now $1583
NYSE Average LTM Volume (per day): Then 1.3 billion shares; Now 545 million shares

http://www.zerohedge.com/news/2013-03-05/last-time-dow-was-here

Good post Max. I'll bet most people don't give a flying fuck that the market is up as they probably have little, if any, money invested. The overall economy is clearly worse off than it was last time we got here.

The market is up because there is NO WHERE else to get a decent return. So those trying to put their money to work are basically being herded into more risky assets.