Are Politicians Bad for Stocks?
Is Congress bad for business? Probably. Pending legislation, politicians' use of class warfare speech, politicians' demonizing industy sectors, legislative uncertainty, all of these can have a bad effect on job creation, economic growth.
I am editor-in-chief of REP. magazine and WealthManagement.com. We try to keep politics out of our coverage, of course, so i use my blog, VonAldo.com, as an outlet to grouse and correct the mainstream press' Democratic bias. I am a Libertarian and think that government should stay out of our lives as much as possible.
Here is how my blog starts today:
This is good news: Congress will be doing nothing until after the November election—at best. According to Slate’s blog, in action isn’t good for the economy. I don’t know. Uncertainty over legislation and taxes certainly isn’t good for business, but a money manager I know has done research that he says proves that stocks go up when Congress is not in session and goes down on days Congress is in session.
As long as politiicans are able to reward their supporters with special treatment via the tax code, yes they will be bad for the country. The intersection of government and business has been horrible.