Capture Is Big Win for Bush, but Market Boost Could be Brief

In terms of market sectors, transports should be the greatest beneficiary, with financials and dollar beneficiaries the least to be favorably impacted.

Saddam Hussein's capture will have little impact on my negative outlook for equities, as the dictator had no relationship at all to the structural issues I have repeatedly mentioned over the last several months (a spent-up consumer, sharply higher twin deficits, a world without stimuli, etc.)

If anything, the euphoria created by Saddam's capture might create a degree of complacency and confidence on the part of equity investors, which might set the stage for a more consequential intermediate-term top than most expect.