The Election and Stocks

Business Insider is ruminating over today's stock market action...is it a "Romney Rally"???

Stocks are taking off. Now up a bit less than 1%.
Romney rally? It could be, since there's no equivalent rally happening in the European sovereign bond market, so it would imply that the rally is based on something stateside.
A couple other quick points:

• It's pretty well accepted dogma on Wall Street that Romney would be better for stocks.
• Also, stocks got a bit of a lift last night right after the Romney victory.
• The Romney win was the #1 talking point on morning analyst notes today.

Bottom line: Quite plausible.

Lest anyone forget, I posited the possibility of a "One Term Rally" back in August 2011.

So, what is my point? My basic conclusion is this - the mega-trend, or the "big idea", is that Americans have always known deep in their bones that Obama was a gamble and they are now 90% convinced that they have lost that gamble. There is almost nothing that can stop this trend from playing out....

Secondarily, I think this is good for the stock market.  The economy will muddle through for the remainder of this year and into next, but the further Obama slides and the lower his chances at reelection get, I think we will see an inversely proportional growth in economic optimism. The more it looks like Obama is a goner, the more American business leaders will feel like a giant weight is being lifted, the more entrepreneurs will feel like the sky is clearing. I predict a rough inverse correlation from here on in between Obama's poll numbers and the stock market - call it the "one term rally."

and this

Did someone say "one term rally"? Yes, someone did and the more that someone thinks about it, that someone thinks it could be rather huge. Corporate profitability has more than held up, it's at record levels. Corporate financial soundness is at record levels as debt as a percentage of anything - equity, assets, cash flow - is as low as it's been in decades. The only thing that is missing is growth. If we get a reversal of the damaging policies inflicted on us by the Lightworker, there will be growth opportunities for American businesses. Put together profitability, financial soundness, and growth and it could be off to the races.

 and, of course, this

 As a matter of fact, I think I called a long-term, secular bull market a couple days into Obama's presidency on theory that it would be so bad that the market predicted an utter decimation of the progressive wing of the Democratic party.