A Little Bit Late

Eighteen months and 70% after the bottom, Steven Pearlstein of the Washington Post tells us “Yes, it may finally be time to get back into stocks.”

Finally? This is honestly one of the silliest columns I’ve read in a long time. What else can you say about a gem like this?

As I see it, the biggest risk to stocks right now is the prospect that radical Republicans might win control of Congress, setting up a political stalemate with a veto-wielding president that almost surely put an end to the Dow’s 2,700-point Obama rally.

The Obama rally? Even if you’re a hyper-partisan, how can someone really say that the Republicans are the biggest threat to stocks? Not inflation or deflation. Not taxes. Not a double-dip. Not an oil spike or Iran. None of those. The real threat is…political stalemate! Looking at the 1990s, that was a pretty good time for stocks and it was marked by political stalemate.

Posted by on September 24th, 2010 at 12:04 pm


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