Perturbing Priorities- Political Effects on The Market

Who Is To Win- A chart represented depicting
 the chances of winning : Barack Obama v/s Mitt Romney 

It is such that 'The Betters and Bookies' throughout all forms of market has discounted Obama's win making him President for the Second Term. ALL in ALL there are more positive aspect that is being portrayed on his win that would push markets overall higher. The so called opposition party who is against Obama (Mitt Romney) has instilled more fear than confidence among small businessman and even in the market as a whole and as such they believe it would be better if the US economic stand (which in a way showed signs of Improvement) is laid in the hands of a Democrat.

The other form where Mitt Romney (Opposition Party) is not being favored is because he disowns quantitative easing and has sworn to sack the Federal Chairman for his decision for more stimulus spending in the past. However what actually threatens the Market as a whole is Romney’s stand against Chinese Currency de-valuation and would brand China as a Currency Manipulator. Many such stands against a Huge Economy such as China could spark Trade war against the developed nation that would mainly start with the Chinese Dumping the US Treasuries, resulting into a major risk for US recovery.

There are many reasons as to why Obama is favored to win this election but there always a factor for too close to call and as such that may go up against optimistic stand in the Capital Markets...

We wouldn't be ill-advising for traders who think market would move higher ...however what is important is that we make a stand after proper Market behavior is determined.

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xDirect India

www.xdirect.in