You brought it up....However I am glad to learn EVERYONE is not living in the Gloom and Doom some would have us believe its 1929 (or 1979) all over again.....

I'm dumb enough to think Politics IS important. Make no mistake Politics determine the direction of the markets which are a leading indicator of things to come....not things past. IF the market is dropping its a result of people believing the worst for the future......When markets rise its people believing better times are ahead.....So far the latter has been evident. I am one of the few who is surprised by this??? This is painfully and joyfully evident all though out history. Those who use Politics as a crystal ball will make good on thier investment choices.

Loosen bank regulations...more people buy homes...more people buy homes,,less homes available...prices go up...as prices go up MORe people try to get in to keep from being shut out....more creative loans....more homes bought...home prices ride even more.....All because of political moves in 1997!! and the backing of loans by the government previously only available to Veterns on DOWN PAYMENTS Only!!! Politics.

The single largest two day drop in the DOW occurred AFTER Obama was officially elected!!! So much for good times and change to come......Where's all the confidence in Obama's choices and cabinet? Certainly the market should react positively!

It reacted in hours to Steve Jobs deciding not showing up at MAC World!!! It's all about Obama now. Confidence good.... and the market goes up. Bankrupting the country with bridge builders and pot hole fillers while his Choosing a Treasury Secretary who did not pay taxes due? Calling it an "innocent mistake" Sounds like they are talking about Palin's daughter...although the mistake was NOT to abort the child in that case I suppose.

On the bright side Best Buy should be a good buy now that Circuit City is finished.

History is full of evidence of political protectionism. Higher tariffs and trade barriers against free trade, as exampled by the Hawley- Smoot Tariff Act of 1930, which helped bring on the Depression and the World War that followed. I hope those crying for tariffs and against free trade either have a long memory or can read a book.

Don't discount politics when making important long term financial decisions. Ever. Markets are and always have been leading indicators of the economy to come. Confidence drives markets. Obama show little confidence last week....Just Doom and Gloom...UNLESS we do as he says and support his trillion dollar "stimulus plan" As can be seen the markets no likey....

[This message has been edited by Kingfrog (edited 01-16-2009).]