Beware the Elephant!

September 22, 2010 Duncan Davidson

“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.

About Duncan Davidson 228 Articles

Affiliation: NetService Ventures

Duncan is an advisor to NetService Ventures, where he focuses on digital media and the mobile Internet.

Previously he was at four start-ups: Xumii, a mobile social service based on a Social Addressbook; SkyPilot Networks, the performance leader of wireless mesh systems for last-mile access, where he was the founding CEO; Covad Communications (Amex: DVW, $9B market cap at the peak), the leading independent DSL access provider, where he was the founding Chairman; InterTrust Technologies ($9B market cap at the peak), the pioneer in digital rights management technologies, now owned by Sony and Philips, where he was SVP Business Development and the pitchman for the IPO.

Before these ventures, Duncan was a partner at Cambridge Venture Partners, an early-stage venture firm, and managing partner of Gemini McKenna, a joint venture between Regis McKenna's marketing firm and Gemini Consulting, the global management consulting arm of Cap Gemini.

He serves on the board or is an adviser to Aggregate Knowledge (content discovery), Livescribe (digital pen), AllVoices (citizen journalism), Xumii (mobile social addressbook), Verismo (Internet settop box), and Widevine (DRM for IPTV).

Visit: Duncan Davidson's Blogs

Beware the Elephant!

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