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CNNMoney Survey: Wall Street Wants a Republican in White House

Friday, 06 Apr 2012 06:49 AM

By Michael Kling

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Wall Street wants a Republican in the White House, a CNNMoney survey shows.

An overwhelming majority — 70 percent — of investment strategists and money managers in the survey say a Republican president would be better for the stock market.

The financial professionals say they believe a Republican president would advocate tax plans and regulations that are more favorable to the economy.

Editor's Note: Obama’s Economic ‘Fix’ is In . . .

Although, as CNNMoney notes, stocks have historically performed better during Democratic administrations, the Wall Street professionals say the Federal Reserve's monetary policy, rather than anything President Barack Obama has done, is responsible for the current economic recovery.

Most Republican tax proposals, for example, would lower or eliminate tax rates on capital gains, while Obama has recommended increasing them for high-income households.

Wall Street's mood in general would improve if a Republican wins the election, some say.

However, a few financial experts want Obama to serve another term.

"Wall Street is just interested in its own pocketbook," says Donald Selkin, chief market strategist for National Securities. "They want a Republican because it could mean lower taxes and less regulation. But special exemptions bother me, and without regulation, banks go crazy."

Others say it doesn't really matter who wins, since Congress must enact any regulatory changes.

It's natural that Wall Street, which once supported Obama, should turn against him, writes Alec MacGillis in The New Republic. Banks feel they are blamed for the financial crisis and disdain new regulations of the Dodd-Frank Act.

Mitt Romney has raised more campaign contributions from hedge funds than Obama by a four-to-one margin. Hedge funds' loathing of Obama now — as well as their support for him four years ago — is perplexing and may not be completely rational, MacGillis theorizes.

"The revolt of the hedge funders, it turns out, is a phenomenon that goes deeper than finance or politics," he writes.

Editor's Note: Obama’s Economic ‘Fix’ is In . . .



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