Polls and Pols – What does it mean?
Recent polls taken during the ongoing government slowdown indicate that the US citizenry is losing confidence in most federal government leaders (President Obama, Republicans, Congress, etc.). At the same time, the prices of common stock indexes are near all-time highs. In elections, voters make their choices by casting their ballots. In investment portfolios, investors signal their choices by casting ballots too – but in this instance, their “ballots” are dollars. Many inferences could be made about the above referenced juxtaposition of the sinking popularity of government leaders and rising financial asset prices, but I would infer that there is an expectation that the status quo – non-ending federal fiscal deficits – is finally going to be brought to an end.
All comments and questions are welcomed.
Bob Bilkie, CFA