Photo: Spensatron_5000 via Flickr
We’ve been discussing the post-November election investing environment a lot lately, simply because we think it may be the most important issue for investors, and because we think the dominant thinking is deeply confused.What we have issue with is the “gridlock is good” argument for stocks. We actually think this was obliterated early this year, when Scott Brown won, and while Cramer argued gridlock is good, the market went onto plunge.
But anyway, here’s a really simple question. If Congress immediately went into deep gridlock right now, and nothing could get passed, what would happen to the tax rate of every man, woman, and child in America, regardless of income level.
That’s right, they’d go up.
You think that’d be good for the market?