SAN FRANCISCO, July 31 morning news, according to CNBC reported, from the U.S. presidential election, only hundred days on the occasion, the investors have started to increase a candidate will win the general election bet.
The conclusion of one analyst believes that the three days the stock market rose sharply only means that Wall Street expect the Republican presidential candidate Mitt Romney win last week.
Morgan Stanley's chief U.S. equity strategist Adam S. Parker in the analysis, said that this is a logical interpretation, a person can make on the stock market rose in the present circumstances there will be more to sell stock . He said no other causes of the rising stock market in addition to Romney win.
Parker said in a note to clients research report: "The problem is there can be no justification optimistic about the stock market." He also reaffirmed the 1214 points in 2012 the S & P 500 target stock index, which compared with current levels decreased by 12%.
Parker said: "Our baseline targets lower than the current level of 10-15%, almost every day, expressed surprise this so incredible? 10 percent decline in the stock market over the past 12 years 8 we can make a better question is, why people do not think a 10% to 15% volatility, fell rather than rose. "
Parker pointed out that the weak revenue and central bankers may not support the stock market continue to take action. He said the near-zero interest rate policy of the Fed and the ECB is, in fact, are weakening the prospects of the stock price-earnings ratio.
Parker made ??the conclusion is that investors are betting that Romney will beat Obama in the presidential election, in the White House, he will create a more friendly atmosphere of the business community.
He said: "We're really not worried about European issues will be resolved, or the economy will get strong growth, we do not believe that corporate profits will be stronger than expected for us, the biggest U.S. stocks good scene about cash flow, both potential I believe they will be more active, more effective domination. "
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