U.S. stocks advanced today in the biggest presidential Election Day rally in 24 years. This has been led by energy and banking shares, on higher commodity prices and speculation the Treasury will bail out more financial companies. (Bloomberg)
According to Philip Orlando, who helps manage $330 billion as chief equity strategist at Federated Investors Inc. in New York, “The elimination of the uncertainty of the campaign typically results in an end-of-year rally and you’re starting to see that today.” [social_buttons]
The next President, whether Democrat Barack Obama, who leads in national polls, or Republican John McCain, must contend with a grim economy crippled by declining profits and the highest unemployment in five years. Jonathan Pershing of the World Resources Institute tells us that a recent Deutsche Bank study found that governments will stimulate growth through investments in green energy. Professor Robert Pollin of the University of Massachusetts-Amherst recently told Congress: “A green investment agenda–focused primarily on measures to dramatically improve energy efficiency but on advancing renewable energy commercialization as well–can itself serve as a powerful engine of job creation in the short run.”
Financial analysts certainly have a more positive outlook: JPMorgan Chase & Co.has been talking about a post election rally. If U.S. stocks continue to rally post the election uncertainty then, it looks like climate policy will be high on the new government’s agenda as climate change coupled with energy security will play a significant role in the new government’s efforts to stimulate economies in 2009.