Business and Capital Market Analysis !!!

To shift long-term investment strategy so that take advantage of the next four years - and then some - stay with a diversified portfolio but consider making adjustments in holdings to capitalize on an Obama presidency. The stock market tends to do better under a Democratic administration than a Republican administration.

Obama will likely focus on regulating the markets, coming up with a new stimulus package and rebuilding the country’s crumbling infrastructure, which could include investments in the power grid and alternative energy.

Democrats vs Republicans On the Economy
Did you know that Democratic presidents are better for the economy than Republicans? Sure you did.

The results are simple: Democratic presidents have consistently higher economic growth and consistently lower unemployment than Republican presidents. If you add in a time lag, you get the same result. If you eliminate the best and worst presidents, you get the same result. If you take a look at other economic indicators, you get the same result. There's just no way around it: Democratic administrations are better for the economy than Republican administrations.

Skeptics offer two arguments: first, that presidents don't control the economy; second, that there are too few data points to draw any firm conclusions. Neither argument is convincing. It's true that presidents don't control the economy, but they influence it — as everyone tacitly acknowledges by fighting like crazed banshees over every facet of fiscal policy ever offered up by a president.

The second argument doesn't hold water either. The dataset that delivers these results now covers more than 50 years, 10 administrations, and half a dozen different measures. That's a fair amount of data, and the results are awesomely consistent: Democrats do better no matter what you measure, how you measure it, or how you fiddle with the data.

But it turns out there's more to this. Via Brendan Nyhan, and a paper by Princeton's Larry Bartels that adds some fascinating details to this picture.

The first thing Bartels did was break down economic performance by income class. The unsurprising result is shown in the chart on the right.
Under Democratic presidents, every income class did well but the poorest did best. The bottom 20% had average pretax income growth of 2.63% per year while the top 5% showed pretax income growth of 2.11% per year.

Republicans were polar opposites. Not only was their overall performance worse than Democrats, but it was wildly tilted toward the well off. The bottom 20% saw pretax income growth of only .6% per year while the top 5% enjoyed pretax income growth of 2.09% per year. (What's more, the trendline is pretty clear: if the chart were extended to show the really rich — the top 1% and the top .1% — the Republican growth numbers for them would be higher than the Democratic numbers.)

In other words, Republican presidents produce poor economic performance because they're obsessed with helping the well off. Their focus is on the wealthiest 5%, and the numbers show it. At least 95% of the country does better under Democrats.

But this raises an interesting question: if 95% of the country does better under Democrats, and if economic performance is the most important factor in most presidential elections, then how do Republicans ever get elected? is that cultural issues often override economic considerations.
top chart shows income growth during non-election years, and it displays the usual characteristics: under Democrats, income growth is strong overall and the poor do a bit better than the well off. Under Republicans, income growth is weak overall and is tilted heavily in favor of the already prosperous.

But now look at the bottom chart. It shows economic performance during election years and it's a mirror image of the top chart: Republicans produce better overall performance, and they produce especially stupendous performance for the well off. Democrats not only produce poor overall performance, they produce disastrous performance for the well off, who actually have negative income growth.

In other words, voters aren't necessarily ignoring economic issues in favor of cultural issues. Rather, Republicans produce great economic growth for all income classes in election years, and that's all that voters remember. They really are voting their pocketbooks.

Bottom line: if you're well off, vote for Republicans. But if you make less than $150,000 a year, Republicans are your friends only one year in four. Caveat emptor.


Source :
1. Democrats vs Republicans On the Economy
2. Build an Investment Strategy for an Obama Presidency, posted by Carlo Dellaverson