The president can only put into place policies that make conditions better or worse for the markets. The best way to describe how George Bush impacts the markets is by showing you what he HAS done at what I believe was one of the most important junctures in our history.
The markets could not have asked for a more perfect storm than what happened in 2000 and 2001. Murphy would have been proud, as whatever could go wrong did go wrong.
The biggest stock bubble in history started the worst bear market in 70 years. This caused capital gains revenues to plunge.
The technology and Internet bubble popped, leading to massive layoffs in industries that were leading growth stories. Employment fell off a cliff. Because of all this a recession started in 2000.
9/11 buried the travel industry. For a week, our economy stood still. It caused corporate America to pull in its reins. America's psyche was shaken. Many thought this country could not recover.
You can then add in corporate accounting scandals, major bankruptcies in airlines as well as WorldCom, Enron and a whole host of debacles. And one cannot forget the war on terror as well as the war in Iraq.
George Bush knew the right answer. He took swift and effective action. He did not sit around hoping for things to get better. He knew he had to put policies in place to effect a change.
Dividend tax cuts, estate tax cuts, marginal tax rates cut, tort reform, corporate reform. The common thread in George Bush's policies is what I believe the most important thread: letting you and I keep more of the money we make to do what we want to do, and letting the economy work by unlocking capital. And the timing could not have been better! The results speak for themselves.
Despite the naysayers:
• This country's net worth is the highest ever.
• GDP growth over the past 18 months is the strongest in 20 years.
• The stock market has recovered all of its losses from 9/11.
• 2 million jobs have been created over the past year.
I can go on and on, but this country's economy is back on track and in a big way. For sure, there are things that still need to be dealt with, mainly high energy prices and a dollar that continues to drop. This will need to be attended to.
With this president it all boils down to his pro-growth, pro-business policies that have set the conditons for a better economic future for all of us. After all, our freedom to make our own choices is what has made this country great. Instead of going deeper into recession, the economy started a major upswing that lasts until this day.
This weekend our Business Block has much more on how politics affect YOUR investments. Tune in Saturday 10am — noon ET.