Obama's Speech And Promises To Small Business Provides No lift To Stocks

The market was headed lower early on, but Obama’s speech to the Brookings Institute provided no help. He even promised to eliminate capital gains taxes for small businesses — theoretically a real supply-side stimulus idea — but that was no help.

So does the market not like Obama? No, that’s not the answer. The answer is that the market doesn’t move on what Presidents say, and if people think otherwise, they’re probably seeing the world through ideological blinders.


NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.