DOW
Thursday evening a man told me that his Merrill Lynch advisor told him that historically whenever an incumbent Republican President wins reelection, the DOW traditionally goes up 18% within the next year.
I go through Morgan Stanley and I'm meeting with him next week so I'll pose my question to him to see if this guy was just rambling and babbling or if there is some basis to this theory.
Any financially saavy minds here?
I don't work for Merrill or Morgan, but one of the other top investment banks. There may very well be a historical correlation between incumbent reelections and increases in the Dow, but I wouldn't put too much faith into it. In many different ways, our country and most others in the world are facing a very different world (geopolitically, economically, etc.) than they have before. I could of course be very wrong, but my own view is that the next few years will be the time when yield producing stocks and funds will shine.
What you heard about the DOW is in fact historically true. And it goes beyond the dow to include other markets nasdaq, russell, etc...the whole market in general tends to rise. So far, this has held true this time around....but you still can't beat real estate!!!
I bet you all have seen this on the news tonight.. here is a link of the fight of the Pacers and the Detroit Fans going at it...
http://www.santoalt.com/pacers_pistons_fight.php
then click on the play button.. might not be dialup friendly..