Lessons Learned From The November Election

Via Michael Naso of FBN Securities, After the first Presidential debate, I argued that Governor Romney’s solid victory over President Obama was the worst outcome for U.S. stocks, for it gave false hope to a Republican sweeping into the White House despite the Electoral College landscape projecting otherwise.  I suggested that a more gradual acceptance of the November result would give the market a better chance to absorb the news with minimal impact. We are presented with a similar scenario with Washington’s addressing the fiscal cliff.  Optimistic comments about resolving the crisis has spawned gains in equities that are sustainable while losses resulting from downbeat remarks have offered profitable short term buying opportunities.  While much of this price action the past few days has benefitted from typical calendar money flows that will disappear in the middle of...