Political Investing

We have two candidates for president that have really different ideas on how to make the economy grow.

Bush believes in the entrepreneurial approach. People should be allowed to invest in themselves. He even wants to let people have some of the 15% that now goes to the Social Security "trust fund". Folks, there ain't no such thing. All the money the government takes out of your paycheck goes into the general fund and the pols spend it as they choose for "your best interest" provided it coincides with theirs. Am I being too cynical?

Gore believes the government should take care everything and everyone. The more dependency of the people on the government the better because the dependents will look to him for what they need and keep him in office. Forty percent of the people in this country pay no taxes at all.

But what is the important thing that will make the stock market continue to go up? Is Bush better than Gore for the market? Or visa versa? Is a Democrat better than a Republican for the stock market? Or visa versa?

Historically the market finishes the year up 14% when the incumbent party prevails. The Dow goes down 3% when the parties change in the White House. It would seem Mr. Gore would be a better bet. But little George has proposed a plan that would give wage earners the right to put 16% of their payroll taxes into a private investment account. This would certainly fuel the stock market.

Who takes care of those who do a poor job of investing and lose all their money? We are already taking care of them. Did you know the return on investment for Social Security is about 2 1/2%? A money market fund earns twice that. Yes, there will be some who do lose that small personal investment account; however, there will be many more who do well and will have a better lifestyle for their personal efforts. There will be another bear market and all the sheep will be sheared.

Right now the economy is so strong that Mr. Greenspan is doing his best to slow it down. And we are in a strong world economy. Even Germany and France have finally learned that the way to stimulate their country's growth is to lower taxes. It has been an expensive lesson for them. Lower taxes mean more money for people to spend and invest, both of which stimulate the economy. Democrats needn't worry that there will be less spending if they should lose the White House as the Republicans know how to spend as well as they do. Cynical again, huh?

When it comes right down to which man will do better or worse for the stock market it is a toss-up. The difference is made in Congress, not in the White House. The president tries to steer the Congress to act on his beliefs. One of the things few people remember - it is best to have opposing views between the executive and legislative branches of government. A Democratic president is balanced off by a Republican Congress. And visa versa.

We'll just have to wait to see what this next election brings.

Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know.

Copyright 2005

Zacks Releases Four Powerful ''Buy'' Stocks: HSN, Inc., Tiffany & Co ... Zacks.com ... beat the market and provide a positive return. My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank. and more »

Bells Will Ring At The Bottom in Stocks and Housing Benzinga That stocks/mutual funds beat other investment asset classes over the long haul. What seems "impossible" now--that people will repudiate these core beliefs ... and more »

NPWZ: Spec Buy on Fuel Cells Zacks.com ... beat the market and provide a positive return. My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank. and more »

The Stock Market As Propaganda Benzinga ... between the bottom 40% with few financial assets and the top 20% with the vast majority of the assets) own stocks/mutual funds worth more than $10000, ... and more »

Piqqem Sentiment Shows Bullish Signal as it Breaks Thru 30 Day Moving Average piqqem.com (blog) Piqqem tracks sentiment on all securities including stocks, mutual funds, ETFs, and major market indices. The Piqqem sentiment scale runs from 100 on the ...

China's inflation nightmare Moneylife Personal Finance Magazine However, Osian officials claim that a major chunk of the redemption amount would Current events, Stocks, Mutual Funds, Spending, Insurance, Borrowing, ... and more »

Don't put all eggs in one basket Business Standard He can invest the amount in stocks, mutual funds, or a mix of both. Investing a large sum in stocks: The first thing any wealth manager will suggest is ... and more »

Morningstar 4Q Net Down 25% On Charges, Rev Rises Surprisingly Wall Street Journal The company--which provides data on stocks, mutual funds and similar vehicles--also reported a surprise increase in revenue, after posting declines the rest ... and more »

BEFORE THE BELL: US Stock Futures Down After Fed Rate Hike Wall Street Journal The company, which provides data on stocks, mutual funds and similar vehicles, also reported a surprise increase in revenue after posting declines the rest ... and more »

Investment research center available at Robbins Arlington Advocate By Anonymous Access comprehensive up-to-date financial information on stocks, mutual funds and exchange-traded funds through Morningstar Investment Research ...