Wednesday, November 7, 2012

Obama Wins

Aussie markets were weaker, then ended up 31.7 points.

Obama wins and the democrats also remain control of the senate.
in the 15 presidential elections since 52, sp500 has gained 6.2% in the last two months of the year.
last two elections saw a 7.5% and 7.1% rise respectively (2008, 2004)

Australia dollar remains well bid at 1.0443 after RBA kept rates unchanged this week.  However, I still think we may have one more rate cut next month and that will be the end of the lowering cycle.  There are rate forecasts that we may see 3 more cuts over the next 13 months (to Dec 2013).