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Wealth Strategies: Markets may rise after GOP convention

Wednesday, August 29, 2012 - 02:59

Aug. 29 - S&P Capital IQ's Sam Stovall says stock markets tend to rise after Republican conventions, but points out this year investors will be looking for signs the parties are willing to compromise on issues.

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This UP convention isn't all -- and tap what the Democrats set to take the stage in North Carolina next week. Well stock markets taking away from these conventions. For his spots and drug by -- -- -- all cheap equity strategist at S&P capital IQ. -- you did some research on what the market spewed during conventions. So what have you found that typically. Dictates market behavior during the Republican Convention. What Rhonda what I have found is. I guess leave the old fought that investors have that. Wall Street tends to favor Republicans. Came through with these numbers because they looked at. What happened to the S&P 500. Since 1948. During the group they conventions and -- five days after. And what I have found is that on average the S&P gained about 13 of 1%. During the Republican conventions. And then pretty much treated water in the one week after as compared with negative results for the Democrats. So how bad with a negative results for Democrats what should we expect next week then. Well if history repeats itself but there's no guarantee it will. We're still talking about relatively small numbers here that on average the market has declined about one quarter of 1%. During the convention and then about 13 of 1% in the week after. And so in general we know what we could find is that we've had periods in which the market was down almost 2%. During the convention that was in 1996. When President Clinton and VP -- were going for re election. Or can be is as high as they gain two point 7%. As we saw went. President Obama was running for his first time. -- market's gonna focus on with these candidates once all the hoopla is over with with both conventions. I think really the other question is going to be what will likely happen to the fiscal -- will we end up. Having all of the bush tax cuts go away all and also be sequestration. In that very sharp cuts to social programs says most defense spending. And could that end up throwing the US economy. Into recession so I think investors really gonna pay an awful lot of attention to. What both candidates say and whether -- -- if there's an increased likelihood that. Either one will be elected but also be listening quite closely. To what comes out of congress to see whether there's any movement toward working together. As appease fans start all this talk to you thanks so much span. Thank you -- At least your second Reuters Insider platform everyday at 3 PM for more wealth strategies segments I brought this up there this is writers.

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Wealth Strategies: Markets may rise after GOP convention

Wednesday, August 29, 2012 - 02:59