Thursday, December 30, 2010

Look beyond elections, QE2

Never fear, drug market.After the elections of Tuesday and as expected decision fed Wednesday restart Money print - errr, quantitative easing - there is more to consider that only book premiums and dress the fenĂȘtres.Voici a few questions that might be investor hearts pumping and stock movement.

Firstly, it is the economy.Investors should not forget that great monthly report October jobs arrive Friday matin.Des given recent allegations unemployed were better than expected. But, says Nicholas Colas group monthly ConvergEx retained employment and even insignificant tax enough.

Which suggests "the silent expectations Friday next report will probably difficult to achieve," wrote Mr. Colas, market strategist. Is fresh disappointment on the growth of employment than despair investors that the Fed can get things rolling? It will only fuel equity that expectations for printing money to get even more gains or higher?

Secondly, these small tax issues are still there. Regardless of the elections, Congress of current democratic control must hash important tax policy in the eyes of investors in the session "lame duck".It is then the fate of the tax cut passed under former President George w. Bush seems to be solved.

"This has significant impact on high dividend paying stocks, corporate taxes and income of consumers in 2011," wrote Jeffrey Kleintop, Chief market strategist at LPL Financial, in an e-mail to MarketBeat.

Republican big gains in workplace conditions - for example if they take and the Senate and the House - could make it likely that the Bush tax cuts are extended in all areas, even the highest of employees.(The White House supports let them expire for people making over $ 200,000 per year or families who earn over $ 250,000) .the worse outcome would be a stalemate on the issue at the session "lame duck", due to increases in General when tax Bush cuts to expire on 31 December.

Third, vacances.Les forecasts of the National Federation of retail holiday sales increase of 2.3% in the last year sales 447,1 dollars.Ce billion would be an improvement last années.Mais retail stock investors will be willing to keep a close eye on the marges.Attentes sales based in part on store to maintain low prices to attract consumers tethering plans an increase in tax-induced by blocking would certainly help questions.

All in catalyst market enjoyed on your radar screen? let us know the event as well as the date, in the comments section.

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