Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

11/12/2013 (8 months ago)

Catholic Online (www.catholic.org)

However, the outlook for further gains under Obama is grimmer

The stock market is enjoying increased stimulus under President Barack Obama. Many analysts say that the economic outlook is considerable, considering that this is Obama\'s second term in office. However - there are growing indications that this may not last.

Re-elected Republicans have historically had a better stock-market performance, with an average five percent gain in the first year of their second terms compared with a 1.2 percent loss for Democrats, 2013 is on track for the best return in a decade.

Re-elected Republicans have historically had a better stock-market performance, with an average five percent gain in the first year of their second terms compared with a 1.2 percent loss for Democrats, 2013 is on track for the best return in a decade.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

11/12/2013 (8 months ago)

Published in Business & Economics

Keywords: Stock market, Standard & Poor, growth, Obamacare, NSA


LOS ANGELES, CA (Catholic Online) - "The president came in at a highly unusual time with markets in complete disarray," Chad Morganlander, a Florham Park, New Jersey-based portfolio manager at Stifel Nicolaus & Co. says. "After the rally this year, we're fairly valued at best. The next stage of this will have to be an improving economic outlook and earnings outlook well above where we stand."

The 24 percent jump in the Standard & Poor's 500 Index for 2012 is the third-biggest annual rally after a president was returned to office since the 1930s. According to data compiled by Bloomberg, recent figures trail behind both Bill Clinton and Ronald Reagan. The index has climbed 108 percent since Obama became president, adding more than $10 trillion in equity market value.

Adding to this is a record Federal Reserve stimulus, interest rates around zero percent and a doubling of corporate profits since they fell to a five-year low in 2008 helped sustain stock increases under Obama.

The rally that began just after he took office a second time now exceeds the average length of bull markets by almost a year. Valuations are up 18 percent in 2013.

However, add to that prospects for the Fed to curtail stimulus, threatening higher borrowing costs and the outlook for further gains under Obama is grimmer.

Re-elected Republicans have historically had a better stock-market performance, with an average five percent gain in the first year of their second terms compared with a 1.2 percent loss for Democrats, 2013 is on track for the best return in a decade.

It must be noted that the Obama administration is fighting an international backlash over revelations that the National Security Agency spied on foreign leaders, hacked into fiber-optic cables to get data from Google Inc. and Yahoo! Inc. and intercepted communications of Americans without warrants. The president is also defending his Affordable Care Act this after Web site glitches delayed thousands of people from signing up for the health-insurance exchanges.

"It's unusual that we've gone so long without at least a correction," Mark Luschini, chief investment strategist at Janney Montgomery Scott LLC, said from Philadelphia. "If you just look at this from a valuation perspective, the market is rich. That doesn't mean we have to crash, but it does suggest that going forward, your return assumptions for U.S. equities should be much more muted than they have been."

A birth foretold: click here to learn more!


---


Pope Francis: end world hunger through 'Prayer and Action'


© 2014 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for July 2014
Sports:
That sports may always be occasions of human fraternity and growth.
Lay Missionaries: That the Holy Spirit may support the work of the laity who proclaim the Gospel in the poorest countries.



Comments


More Business & Economics

The buck does stop here: Chinese currency set to close the gap between it and the dollar Watch

Image of A new study from China indicates that the Chinese yuan is likely to become the third most used international currency by 2019.

By Catholic Online (NEWS CONSORTIUM)

China's currency, the renminbi (RMB), is looking to become the third-largest international currency behind the U.S.'s dollar and the euro by 2019 said the Renmin University of China in a report published on July 20. LOS ANGELES, CA (Catholic Online) - Last year, ... continue reading


Financial consultant warns that U.S. is entering third largest stock bubble Watch

Image of A new study by financial consulting firm Smithers & Co. warns that the U.S. is entering another major stock bubble, the third largest in U.S. history.

By Catholic Online (NEWS CONSORTIUM)

A new research report by financial consultant Andrew Smithers, chairman of Smithers & Co., suggests that the U.S. is in the midst of another stock-market bubble, much like the bubbles in 1853, 1906, 1929, 1969 and 1999. LOS ANGELES, CA (Catholic Online) - ... continue reading


WARNING: The most important article you may ever read - We need a moral revolution at the top, before pitchforks appear in the street Watch

Image of In the game of plutocracy you start by owing money to the bank and as it progresses, you owe more.

By Marshall Connolly, Catholic Online (NEWS CONSORTIUM)

An article published in 2011 in Forbes is making the rounds again and people are talking, but despite the dust on the copy, it's a timely conversation. The article by Brendan Coffey reveals that there are four companies that control 147 other companies and those 147 ... continue reading


U.S. to shortly overtake Saudi Arabia, Russia in production of natural oil Watch

Image of In Texas and North Dakota, oil extraction is soaring at shale formations as companies split rocks using high-pressure liquid in a process known as fracking.

By Catholic Online (NEWS CONSORTIUM)

The United States has often found itself at the mercy of unstable nations for the majority of its oil imports. That day may soon be past after American begins the extraction of energy from shale rock, eventually overtaking both Saudi Arabia and Russia in oil ... continue reading


Unemployment among black Americans twice that among whites Watch

Image of The jobless rate among whites last month was 6.6 percent; among blacks, 12.6 percent. The unemployment rate for blacks has averaged about 2.2 times that for whites.

By Catholic Online (NEWS CONSORTIUM)

When African-Americans marched on Washington in 1963, it was under the banner of "Jobs and Freedom." There remains a great inequity with the former; the number of unemployed blacks in America remains twice as much as whites, and has remained that way for ... continue reading


Don't read this if you enjoy shrimp -- and hate slavery Watch

Image of Forced to work on old fishing boats, slaves work 20-hour days, often with drugs to keep them going. They are not paid, having been bought and sold into the industry.

By Catholic Online (NEWS CONSORTIUM)

A shocking investigative report from The Guardian reveal that virtually all shrimp harvested in Thailand is in some way a product of slave labor, and that much of this shrimp ends up in the mainstream food supply chain. If you eat shrimp, it is likely you are consuming ... continue reading


How bad is it? So bad even the capitalists are quoting Marx Watch

Image of IMF managing director Christine Lagarde gave a keynote address where she quoted Karl Marx.

By Catholic Online (NEWS CONSORTIUM)

The elites of the free world may be awakening to the fact that their unfettered pursuit of more is perhaps the single greatest existential threat to their existence. At a recent invitation-only conference in London, several billionaires as well as the head of the IMF ... continue reading


Yes, corporate tax havens cost you too! Watch

Image of It's common and it cheats millions of their due.

By Catholic Online (NEWS CONSORTIUM)

Surprise, surprise, surprise!  The same day Cardinal Maradiaga condemned unethical business practices that do nothing to help those at the bottom of society, a report was released that shows a majority of Fortune 500 companies stash their money offshore to avoid ... continue reading


America is now more appealing to manufacturers than Germany Watch

Image of German manufacturing firms are finding America an increasingly appealing place to open factories, because of the low price of business.

By Catholic Online (NEWS CONSORTIUM)

Many workers in the United States may agonize over growing job losses thanks to low-cost workers in India or China. For many in Germany, the U.S. may take that role thanks to the low cost of energy. LOS ANGELES, CA (Catholic Online) - The U.S. is the new global ... continue reading


Seattle approves $15 minimum wage Watch

Image of Seattle residents gathered to support the measure to increase the city's minimum wage to $15 an hour.

By Catholic Online (NEWS CONSORTIUM)

In a historic move, they city council of Seattle voted unanimously to raise the minimum wage to $15 per hour, which is twice the U.S. required minimum wage. LOS ANGELES, CA (Catholic Online) - The decision will go into effect next year, and through the next three ... continue reading


All Business & Economics News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Reading 1, Song of Songs 3:1-4
1 On my bed at night I sought the man who is my ... Read More

Psalm, Psalms 63:2, 3-4, 5-6, 8-9
2 Thus I have gazed on you in the sanctuary, seeing ... Read More

Gospel, John 20:1-2, 11-18
1 It was very early on the first day of the week and ... Read More

Saint of the Day

Saint of the Day for July 22nd, 2014 Image

St. Mary Magdelene
July 22: She is called "the Penitent". St. Mary was given the ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter