Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

11/12/2013 (1 year 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 (1 year 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'


Copywriter 2015 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for May 2015
Universal:
That, rejecting the culture of indifference, we may care for our neighbours who suffer, especially the sick and the poor.
Evangelization: That Mary's intercession may help Christians in secularized cultures be ready to proclaim Jesus.


Rosaries, Crosses, Prayer Cards and more... by Catholic Shopping .com


Comments


More Business & Economics

Aging global population threatens to send world debt OUT OF CONTROL, Goldman Sachs warns Watch

Image of Part and parcel of Japan's economic crisis is the rise of male

By Catholic Online (NEWS CONSORTIUM)

The global economy is going to need a new business model - and fast. According to international financial adviser Goldman Sachs, the world's growing aging population - coupled with the reduction of young workers, the world is drowning in debt that it will be ... continue reading


Los Angeles boosts minimum wage to $15.34 an hour, largest U.S. city to do so Watch

Image of Significantly, the bill in its current form includes tipped workers. This means that tips would not count towards the proposed minimum-wage base pay of $15.

By Catholic Online (NEWS CONSORTIUM)

The minimum wage for the city of Los Angeles will be $15.34 by the year 2020 - until then, wages will increase incrementally each year. The vote is being hailed as "the most significant victory so far" in the push to increase the minimum wage nationally. LOS ... continue reading


Another attack on 'In God We Trust': Atheists take a stab at U.S. currency motto Watch

Image of The United States currency's motto is 'In God We Trust.'

By Atarah Haely (NEWS CONSORTIUM)

After a series of unsuccessful legal battles against the religious quote on U.S. currency, a popular atheist activist claims to have found a new and more effective way attack the country's beloved "In God We Trust." MUNTINLUPA, PHILIPPINES (Catholic Online) - Michael ... continue reading


Verizon to buy AOL in $4.4 billion deal Watch

Image of Verizon says the deal will shore up its wireless and over-the-top or OTT video strategies.

By Catholic Online (NEWS CONSORTIUM)

In a deal valued at approximately $4.4 billion, telecoms giant Verizon will acquire digital conglomerate American Online, or AOL. Verizon announced this week it would acquire digital conglomerate AOL, intended to bolster the telecommunications giant's efforts ... continue reading


Five American tech companies have $430 BILLION in which to play Watch

Image of While other companies cry

By Catholic Online (NEWS CONSORTIUM)

While other companies cry "poor mouth" or say they have little at their disposal, at least five American tech companies are sitting on an overwhelming $430 BILLION in cash. There should be no surprise that Apple leads the list by a wide margin. LOS ANGELES, CA ... continue reading


New York Times reports substantial loss in spite of digital growth Watch

Image of There has been a move to make the newspaper more attractive to readers. The newspaper's cooking product, a hub for recipes and food-related content, has been free since its introduction.

By Catholic Online (NEWS CONSORTIUM)

In just one of growing death knells of the daily print newspaper, the iconic New York Times reported a hefty $15 million loss for the first quarter of 2015. Digital subscriptions continue to show solid growth. Digital advertising grew at a double-digit pace. ... continue reading


Shakeup at Walt Disney Parks -- information technology employees replaced by non-immigrant workers Watch

Image of Both Disneyland and Walt Disney World certainly were not the happiest places on Earth for many employees at the beginning of this year.

By Catholic Online (NEWS CONSORTIUM)

Both Disneyland and Walt Disney World certainly were not the happiest places on Earth for many employees at the beginning of this year. Multiple layoffs went around to many several information technology employees and were told their final day would be January ... continue reading


Apple can't seem to spend money fast enough as profits soar and cash reaches a staggering $194 billion Watch

Image of At Apple - the company can't seem to spend money fast enough.

By Catholic Online (NEWS CONSORTIUM)

Digital gadget maker Apple has ended the first calendar quarter with $33 billion in cash and short-term investments and $160.4 billion in long-term investments. Apple currently has $194 billion in cash and investments, more than any other non-financial company ... continue reading


Meet the billionaires who pledged to give up their fortunes to change the world Watch

Image of

By Talia Ramos (NEWS CONSORTIUM)

Through the "Giving Pledge," men and women belonging to the upper crust of the society, with billions of dollars in their name, commit to donating a large chunk of their fortune, whether through their lifetime or through their will. Coming from the majority of their ... continue reading


World's discarded electronic junk building up into massive toxic dump Watch

Image of Less than 16 percent of global e-waste is being diverted from landfill into recycling and reuse.

By Catholic Online (NEWS CONSORTIUM)

Television sets, washers and driers, stereos - broken, discarded, and then thrown away, are creating a massively toxic waste dump of gargantuan proportions. The irony in all this "e-waste" is the fact that precious metals such as gold and silver are also thrown ... 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, Sirach 36:5-6, 10-17
5 Send new portents, do fresh wonders, win glory for ... Read More

Psalm, Psalms 79:8, 9, 11, 13
8 Do not count against us the guilt of former ... Read More

Gospel, Mark 10:32-45
32 They were on the road, going up to Jerusalem; ... Read More

Saint of the Day

Saint of the Day for May 27th, 2015 Image

St. Augustine of Canterbury
May 27: At the end of the sixth century anyone would have said that ... 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