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November 10, 2004
Enthusiasm on Wall Street after the election may not last
New York correspondent of Xinhua News Agency summarized the main influence of the election on Wall Street on Nov.9.
Wall Street cheered after Bush's victory, as the economic policy in the next term should favor the investor. Tax reduction is at the core of Bush's program, and his Social security reform should widen the role of the stock market in allocating pension savings. Reducing the burden of financing Social security for the enterprises would stimulate them to create more employment. Moreover, many companies will benefit from the orders related to national defence.
However, according to the article, some economists are pessimistic about the performance of the economy in the long run. Two key indicators are the increase of employment and profit margins of companies. The likelihood that the second Bush administration will drive them higher is small.
By most measures, the Federal Reserve is less than halfway through a course of gradually "normalizing" short-term interest rates.
Posted by at November 10, 2004 1:22 PM