The conclusion Parker draws is that investors are betting that Romney will unseat President Obama and bring a more business-friendly environment to the White House.
“At the end of the day, we are not really worried that Europe is going to be ‘solved’ or that its economy will strongly grow. We also don’t think strong corporate profitability relative to expectations will save the day,” he said.
“To us, the biggest bull case for US equities is based on the huge cash balances and the potential belief that they will be more actively and productively deployed. The biggest possibility here would be Romney winning the presidential election.”
This certainly has to be worrying the 0ne’s campaign – even if the 0ne himself is so self-absorbed that he can’t fathom the information.
There are, of course, a lot of things that can and will happen before election day.
But if Wall Street is actually betting on better days ahead, they will be inclined to help those better days arrive, won’t they?