Wednesday, November 03, 2004

Markets hate uncertainty

Over on the CNN/Money page they have a headline on the DOW box saying "Investors cheer Bush win". This in response to the +101 performance of the DOW today.

Um, excuse me but, no, they aren't cheering a Bush win. They are cheering the end of a close election. Close elections mean uncertainty. Uncertainty means investors don't know quite where to put their money. The uncertainty has ended. The investors now know where to invest (Warning: despite what you might think, I'd advise against buying Halliburton) and that is why the market is cheering.

If Kerry had won they would be cheering just as loudly.


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