Stocks likely to recover no matter who’s president

Wall Street prefers Republicans, McCain supporters argue. But stocks have done better under Democratic presidents, Obama supporters fire back.
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When it comes to the stock market — especially this turbulent market — does it really matter who is elected president?

Yes and no.

By MADLEN READ, AP Business Writer

Politicians do influence the economy — and they’ll play a big role in how the country emerges from this current crisis. But analysts say neither presidential candidate can be a cure for what’s ailing Wall Street.

Wall street broker William F. Lawrence looks at a monitor as ... 
Wall street broker William F. Lawrence looks at a monitor as he works on the trading floor of New York Stock Exchange shortly after the market opened Tuesday, Oct.28, 2008 (AP Photo/David Karp)

“The economy is a big, big machine, and the president is one government bureaucrat,” said Ron Florance, Wells Fargo Private Bank Director of Asset Allocation.

Moreover, most analysts believe the battered stock market has nowhere to go but up next year, no matter who ends up in the White House — and history will probably give the victor credit even if he actually had little to do with the rally.

“The timing couldn’t be better,” Florance said.

Still, the stock market is just one part of the economy, and under either Barack Obama or John McCain, the United States needs to recover from a downturn whose severity has not yet been determined. And either candidate will face a budget deficit of around $500 billion when he’s sworn into office — a shortfall expected to climb to $1 trillion next year.

Because of the deficit, the financial climate might end up affecting the new president’s policies more than his policies will affect the financial climate.

“This whole financial crisis will largely serve as an agenda buster for at least the first year,” said John Lynch, chief market analyst at Evergreen Investments.

Read the rest:
http://news.yahoo.com/s/ap/20081102/ap_on_bi_ge/
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