Stock markets are strange because they reflect the sum total of all our hopes, fears and prejudices at the end of each day. Every so often something big comes along that can have very strong influence on the stock market, and the direction the market is going to take. Bear markets when they do come, come out of nowhere. Everybody is surprised by them, but once they happen, the pundits have what seem to be perfectly reasonable explanations for why they happen.
I submit to you that next weeks Congressional midterm elections will be seen retrospectively as a so-called WATERSHED election whereby dramatic change will be brought about. You will only know this in hindsight over time. If the Republicans are trounced in the House, and lose heavily in the Senate, there will be a tidal wave type change in the direction that the country is going.
During the course of the modern Presidency which is considered to be 1932 onward with FDRs election, our leaders have always been influenced by polls. This is true for all Presidents except for our current President, George Bush. It is absolutely amazing to consider that our President won the White House by 557 votes in Florida in...