IF a DEM gets into office in 08 what will the Stock Market do?

Question

I'm thinking about cashing all my stocks out next year if it even looks close to DEM wins. Especially Hillary....She will ruin the economy and the markets...what say you?

Answer 1

It will fall sharply especially if Hillary is elected. She will likely at least double the capital gains rate and possible tax it as ordinary income, which could be as high as 40% after she increases taxes. Anyone with money in the market will pull profits out ASAP to ensure paying the lower current rate....

Answer 2

The stock market always declines or falls in the days right around an election depending on how well the Republicans are doing. But that's just noise and should be of interest mostly to day traders. Investors who are holding for longer terms - which is the best way to make real profits - ought to ignore that.

In fact, the economy, and therefore the stock market, does better under Democrats than under Republicans. The market dropped slightly when Bill Clinton was elected, but choosing that as a moment to quit stocks would have been a very costly decision. The market was pleased when Bush won, but today is below the level (adjusted for inflation) it was at in January 2001.

The size and consistency of the gap between the economic performance of Democratic and Republican presidents is an interesting and relatively little known fact. The links below give some info.

Answer 3

Don't do this. I'm no fan of the democrats, but you have to be objective in the market. The market will go down in summer of '08. It does this any summer, no surprises there. There might be some funny business on the part of Soros & Co., artificially pushing the market down in order to make the present administration look bad economically. Those chickens will come home to roost, so the net effect will be minor. The market will then flatten out in the fall with very little up or down, as everyone holds their breath with uncertainty. If anything the market will go down during this period as the big boys go to cash to wait for what happens. Wednesday morning after the elections the market will boom, regardless of who wins. The market hates uncertainty. The resolution of the election will remove uncertainty and the market will soar. I predict it will go higher if Hillary is elected than if anyone else gets the nod, just out of sheer exhuberance. If Hillary does get in, the effect on the market will not be dramatic. The market will tank, but it will do so in a very slow, dignified way, as the luster wears off and her insane tax policies start to take effect. There will be significant drops here and there, especially if she starts foaming at the mouth about the capital gains tax. She will no doubt resurrect Bill's economic plan, because it seemed to work so well in the '90's. Problem is that this isn't the '90's, and you don't have a peace dividend, Reagan tax cut legacy or a new, exploding technology sector. The result will be disasterous, as you say. Make some lemonade, though. Get your account approved for options trading, and protect yourself with long-term puts. Then use put options to make money in a declining market. No need to leave the game, just recognize which way the wind blows and go that way with it. Good luck!

Answer 4

if She were to remove the tax credits that Bush awarded to investors then it will definitely go down. That should be great for the economy, working people's pensions, and corporate capitalization that has created so many jobs.

I'll get the thumbs down, but it's true. I know the Liberals would rather we all be poor than most of us.

Answer 5

Sell your Oil stocks

Answer 6

Long term investments are the key. Dont pull out I beg you. Stay in for the long haul, If she wins she'll only be there for 4 years