Stocks rallySteve Rosenbush
The stock market, which sold off late yesterday when erroneous exit polls suggested that Kerry was about to clobber President Bush, bounced back today.
Many analysts believe that stocks actually do better when Democrats are in power. But Jim Awad, chairman of Awad Asset Management, told CBS MarketWatch that "It's an instinctive Bush rall. The market likes lower taxes, the market likes less government interference, the market likes privatization." In addition, Wall Street is pleased with expanded Republican control of Congress, which would make it easier for President Bush to push through his policies, said Awad.
Investors are going to set a very high bar for a second Bush term. For the last few years, the White House has been able to blame any troubles with the economy on the the 2000 recession, or the 2001 terror attacks. Now, with his hand on the economic and security policy for two terms, he'll have to make Republican ideas live up to investor expectations.
The next few years could turn out to be a living laboratory on whether those ideas work.