This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Democrats, GOP Fail to Calm Worried Investors

CHARLOTTE, N.C. ( TheStreet) -- President Barack Obama delivered his convention speech Thursday night, but it didn't offer substance for worried investors.

Democrats and Republicans alike failed to quell any uncertainty about a looming fiscal cliff and a stagnant jobs market.

"This uncertainty within the election as two diametrically opposite philosophies when it comes to the economy ... leads to confusion," said Jeffrey Sica, chief investment officer of Sica Wealth Management. "I think when investors get too confused, and there's not a level of transparency or certainty, there's a much greater likelihood that markets will sell off based on that."

Polls suggest that Americans could be in for a tight race between now and the election.

Investors, Sica said, are treating this election like economic data: When Mitt Romney or Obama unveils more specific economic policies, it allows them to prepare a clearer strategy in the event that either candidate scores victory in 2012. But there's no way to know for certain which direction fiscal issues are headed without knowing who will win.

Of course, that won't be decided until Nov. 6.

One early indicator investors could watch for is a post-convention bump that sustains itself.

"When all is said and [Obama] gets like a five- or six-point blip, and that thing doesn't disappear, then that would be significant," said Doug Roberts, an analyst at Channel Capital Research.com.

A comfortable lead could cause investors to assume Obama (or in the reverse situation, Romney) and his economic policies as the inevitable victors. But an Obama or Romney victory doesn't guarantee a policy monopoly.

Control of the House and Senate proves hugely critical to Washington policy-making.

Republicans have been spending heavily on Senate races as Democrats hold the majority of seats up for grabs.

Earlier this week, Democrats held a press conference at the convention to express their confidence in retaining a Senate majority.

Guy Cecil, executive director of the Democratic Senatorial Campaign Committee, added that he has never seen so many tight Senate races in his career. Cecil went state-by-state to point out the fundraising advantages and disadvantages for Democrats in each race. He even pointed out different strategies on social and economic issues that may favor Democrats in the long run.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $126.44 0.00%
FB $87.28 0.00%
GOOG $523.40 0.00%
TSLA $280.02 0.00%
YHOO $39.38 0.00%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs