What Obama's Win Means for Stocks, Gold - Analysts React
NEW YORK (TheStreet) -- As Barack Obama closed in on his re-election Tuesday night, analysts questioned what the president's second term would mean to the stock and gold markets.
Here's what a few of the analysts had to say in their own words to TheStreet as the final state results rolled in Tuesday evening.
Tim Harvey, senior vice president at ETF Securities U.S.:
"If we see President Obama's mandate extended by 4 more years, his fiscal policies could lead to a continued dilution of the dollar and therefore dollar weakness. Gold generally performs better in weaker dollar environments. ..."So more of the same. I guess the right foot remains on the QE gas pedal -- we can look forward to more of the same over the next 4 years. The US is very important to the gold market, however the gold market is dominated by the Indians and Chinese, so actually the US election is a gold story, but not necessary the whole story." Marty Leclerc, chief investment officer at Barrack Yard Advisors: "Looks like the President will be reelected. One industry that will likely experience reduced government largess in the future is defense. Defense stocks with their low p/e ratios and high dividend yields may look like value opportunities to some. To us, given budgetary realities, they sure have many of the attributes of value traps." Jeffrey Sica, chief investment officer of Sica Wealth Management: "I'm sitting in my library watching the coverage and simultaneously watching Asian markets, precious metals markets and futures. The most obvious development as the race gets tighter is the declines in futures. ...This is indicative of a country so divided that it makes a political stalemate more likely which will result in no definitive direction when it comes to solving our complicated economic problems. The government has been in a stalemate since 2008 and this election is proof that the division is so vast that we must begin to anticipate the government being completely ineffective." Jeffrey Wright, managing director at Global Hunter Securities: "I do believe the election today is a factor in gold's strength thru the day; regardless of who the eventual winner is investors are drawn to gold in times of indecision and uncertainty. ...
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