The last two days have been filled with gloomy economic news, but all of the stock market indexes jumped more than 3% in two days. That is equal to almost half of the total increase this year. Does that make sense to you?
We are living in an upside down world.
There can only be one reason. Investors believe that bad economic news increases the chances that the Republicans will capture the house, senate and president positions. News that is good for President Obama causes the stock market to go down. News that is bad for President Obama causes the stock market to go up.
The news the first part of the week all related to the shooting in Colorado. That diverted attention from the economy -- good news for President Obama. The stock market fell. The last half of the week the economy was the news -- all bad news for President Obama. The stock market went back up.