What A Republican Win in the House Means for the Stock Market

A picture speaks a thousand words. This chart, courtesy of Market Timing Research and their Stock Trend Projections, shows the historic tendency of the stock market (specifically the S&P500 composite index) when Republicans or Democrats control the House of Representatives.

Enjoy … and remember that QE2, as it did in Japan, is likely to lift the prices of all asset classes in a bubble, which¬† pops when the party is over. We remain unconvinced that unemployment will decline in any significant fashion because we see no way that this will help restructure the economy.

S&P500 Trend Porjection for Republican controlled House


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