Does the re-election of President Bush figure into your outlook for the coming year?

The management of fiscal policy often has a significant impact on the financial markets. We feel it would have been harmful to reverse the fiscal stimulus put in place over the past four years. Much of the stimulus was directed at reducing penalties on capital and encouraging investment. As a result, business spending is rebounding strongly from one of the weakest periods on record. The removal and reduction of capital constraints allows for a better allocation and reinvestment of capital. The President is also looking to marketbased solutions for social security and health insurance, encouraging ownership and savings and providing additional market support. The prospects of Tort reform and Tax reform are also encouraging in that they relieve the economy of unproductive costs and regulations.

« Previous | Overview | Next »