On CNBC's Behind the Money blog [1]
on Wednesday, Fast Money executive producer John Melloy promoted a
left-leaning theory as to why the stock market has been on the rise
lately: "While President Obama may not be Wall Street's ideal
candidate, stock prices are rising on growing expectations he will be
re-elected this November."
Melloy pointed to long-term political certainty as a reason for
investor optimism and added: "The surge in President Obama's chances at a
second term also have coincided with a string of better-than-expected
domestic economic data this year, including an all-important drop in the
unemployment rate."
Noting
a rise in consumer confidence that "blew away economists'
expectations," Melloy remarked: "That contrasts with the Republican
debates, many of which have centered on social issues."
As evidence of the pro-Obama market analysis, Melloy cited chief market
strategist for Virtus Investment Partners Joe Terranova: "The
Romney, Santorum, and Gingrich infighting has done irreparable harm to
the Republican Party's ability to present an alternative economic
platform to voters...As long as manufacturing and other key
data continues to improve, the market is growing comfortable with Obama
being President again."
Only near the end of the article did Melloy acknowledge dissenters:
"Some feel it is still way too early to predict what will happen in
November and that Obama’s policies will be harmful to business, causing a
sell-off in 2013 if he is re-elected."
A quote was included from Stephen Weiss of Short Hills Capital, who
observed: "As to penciling in Obama, while the market likes certainty,
certainty of bad news will not be good for the market."
This is not the first time the press has predicted a Democrat in White
House would mean a stock surge. Back in February of 2004, a Reuters story [2]declared: "Kerry Presidency Seen a Boon for U.S. Markets."
-- Kyle Drennen is a news analyst at the Media Research Center. Click here [3] to follow Kyle Drennen on Twitter.