“Gridlock is good” – apologies to Gordon Gecko, Wall Street
This is curiously interesting: The Curious Capitalist (part of Time) reports that the Dem’s do more for stocks than Repub’s when the opposition party wins back Congress in a mid-term, creating gridlock. Idle chatter on top of that is that 2010 is shaping up like 1994, which helped launch the dot-com bubble. So the expectations of a change of Congress is driving stocks up.
While this chart is more intriguing than statistically meaningful, it does challenge that view. Maybe in general gridlock is good for stocks, but in a poor economy, Time argues it may be more bullish for Dem pump-priming to drive stocks up into the 2012 election.