Fierce opposition to President Barack Obama's healthcare bill helped propel Republicans to big victories in the 2010 mid-term elections, when they won a majority of seats in the House of Representatives and cut into the Democratic majority in the Senate.
from Tales from the Trail:
Super PACs and other outside campaign organizations are barred from coordinating with the candidates they support or political parties, but there is nothing keeping a Super PAC from coordinating with another Super PAC, or several Super PACs. And indeed, some of them do.
Deputy Treasury Secretary Neal Wolin is urging lawmakers not to tie the U.S. debt limit to the debate on fiscal discipline.
If Republicans are able to capture either chamber of the U.S. Congress in the November election, they will use that power to try to block any further expansion of the federal government by the Obama administration, Republican Senator Judd Gregg said on Wednesday.
If Democrats are able to hang on to the U.S. House of Representatives in the November 2 elections, Speaker Nancy Pelosi will likely be able to concentrate her power because there will be fewer conservative Democrats giving her a hard time on critical votes, according to top senior lobbyist for the U.S. Chamber of Commerce.
Republicans stand poised to gain substantial influence in Congress, putting at stake billions of dollars in investment as a shift among power brokers throws legislative initiatives old and new into doubt. Reuters Washington Summit will bring together an influential line-up of insiders just weeks before Americans cast their votes, promising a must-read stream of exclusive news on the outlook for Congress and President Barack Obama’s agenda. Editors and correspondents from the Reuters Washington bureau are sitting down with senior lawmakers, including GOP heavyweights in line for leadership, and regulators whose implementation of Wall Street and healthcare reform could be complicated by a change in control on Capitol Hill.
Compiled by Thomson Reuters Proprietary Research Group
There have been five terms out of the last 16 where the last year of the term has a negative return on the DOW, and four of those terms have been during a Republican president’s term.
When we look at the previous 90 day returns before the new term, we see that the markets are generally positive (only four negative in the last 16 terms).
Elections are generally held in the first week of November. When we take the previous 60 day returns before the new term (from Nov. 20 – Jan. 20), we see that the DOW returns are even more positive, with only two terms out of 16 preceded by negative returns in the previous 60 days. This says that the lack of uncertainty after the elections usually give a boost to the market.
Only three four year terms have had negative returns. 1973-1981 (Oil crisis) and 2001-2005 (Dubya’s first term).
On average, the 90 days before the new term performs much better (3%) than the 90 days after the new term starts (1.1%).
The last three terms have started with negative returns in the first 90 days.
Since WW2, the Dems have had 7 terms and the Republicans have 8 (excluding the 2005-2009 Dubya term). The Dems have done slightly better (8.3% vs. 6.7%) in terms of average annualized returns over this period. However, these numbers are skewed in their favor because of the Clinton-Bubble era.