“If Roubini is right, and the Fed cuts rates at its September meeting, thus fulfilling the mid-term election year political promise, could the stock market rally for one year? In spite of weak earnings and lower GDP and rising oil prices?”
Sure it could. Or it could not. Perhaps there is a chance to time the RE market, but I’d say there is absolutely no chance to time the stock market. At least, I know I can’t do it (perhaps smarter traders can), so I’m not even trying.
By the way, one of my favorite blogs, http://www.crossingwallstreet.com, just had a piece on the stock market and election cycle. It’s interesting reading, but I’d suggest not to draw too many practical conclusions out of it.
