Posts Tagged ‘Pelosi’

Notes From Underground: Markets Still On Holiday and Equities Party On

January 3, 2011

Many nations were still out today on banking holidays. The equity markets resumed their rally as U.S. investors clamored for stocks, especially for the high-quality, high-dividend yielders. Investors were caught off guard by the tax compromise between Obama and the Republicans. In the third quarter, many investors sold off the high-dividend-paying stocks as there was legitimate fear that Obama’s team would prevail in increasing the tax on dividends to 35-plus percent. When the Republicans gained control of the House and Obama looked for compromise with the new majority, the Pelosi crowd was forced to swallow their disdain for all things capital and fall in line with a chastened Obama economic team.