Strong Gains

Since the incumbent re-election of George W. Bush as president, world indecis have been performing very well. Many factors both foreign and domestic have spurred a slightly bullish economy. Slight increase of oil supply days before the election bolstered indecis world wide and have not slowed down since. Other factors directly correlated with Bush administration policies seem to have reassured investors that the United States has a strong governing body with unwaivering policies. North Korean officials have made efforts to reaffiliate themselves with the Bush administration to renegotiate terms on nuclear research. This is the first time since President Bush made a speach addressing his refusal to negotiate any further terms with North Korea that there has been any public correspondence between the two countries. Palistinian authorities asked for the US to assist in a state wide democratic election to determine the next Palistinian President (since the recent death of Arafat). In Fallujah US forces backed by an Iraqi army are working hand in hand to put an end to a guirella insurgence. Each of these factors have reaffirmed the world that although the United States does have some contriversial policies it seems as though they are working. Optomism regarding world issues is always a settling scenerio in the mind of the investor and it is evident that investors are feeling more confident through the gains in the world indeces.



John West said...

Though the elections are over, it still seems that the world is as unstable as ever these days. I will be happy when the Iraqi issue is settled once and for all and we as Americans can look at Iraq as a free, democratic society that governs itself without having our fellow Americans in harms way.

Bryce Larkin said...

Elections have a negative effect on our economy, I wonder if there will ever a way to have an election without the effects?

Maudi said...

War is never a good thing. I know that President Bush is a man who is trying to make the people in Iraq understand this but, the only way this will happen is if we kick the crap out of them until the rebels say "uncle". It is important the bush continues to stay strong on the things in Iraq and the Foreign policy that he has set with North Korea.

Dr. Tufte said...

-2 on Stevepadilla2's post for multiple spelling mistakes.

This is really off-subject for the class blog.

But ... one macroeconomic effect of elections is that uncertain outcomes (like this one) can cause households and firms to delay decisions. So, we'll probably see some pent up demand be released over the next few months in a variety of ways.