Keith Fitz-Gerald

Political Gridlock Can Lead to Gains

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• If, however, Bernanke's "Hail Mary" recovery pass is successful, and we avoid a full-blown recession (which seems more doubtful by the day), the historical election-year patterns suggest a brief decline followed by a strong fourth-quarter rally. That would mean that the worst of what the stock market can bring to bear could already be behind us.

Psychologically, we're just as likely as most readers to hope for good markets and a clean political environment; after all, having the two together just flat out makes one feel better. But in our most-candid moments we realize we must get ready for the opposite -- especially now that the Fed and the Beltway Boys are tripping over one another in an effort to regulate "free" markets.

We wish the politicians would focus on something else, especially since the data suggests that their doing so is "good" for the markets.

Nevermind the lies we tell ourselves about elections and our money; sometimes the truth is stranger than fiction.

Keith Fitz-Gerald is the Investment Director for Money Morning/The Money Map Report. To learn more about Keith, read his bio here.

If you enjoyed this article, check out Keith's "Presidential Approval, Dow Drop in Tandem" and "5 Secrets for Successful Bear Market Investing."