Peter Switzer Daily

Big mouth politician hurts stocks

| More

European stock markets were up on good news that Greece has struck a better deal from lenders but a big mouth US politician started the spooking process, which is bound to hurt stock markets in coming weeks.

The fool politician was Senate Majority Leader Harry Reid — a Democrat — who told us there had been “little progress” with fiscal cliff negotiations.

The Dow dropped 89.24 points or 0.69 per cent to 12,878.13 while the S&P 500 lost 7.35 points or 0.52 per cent to finish at 1398.94.

The experts say stock markets are now exposed to “headline risk” where bad news will send stock prices down. The fear index or VIX is sneaking up and what US politicians say and do between now and Christmas will make or break stock prices.

On the good news out of the USA, home prices were up for the sixth month on a trot while November consumer confidence is at a four-and-a-half-year high!

If the US politicians can use their brains instead of their mouths and you add the improving economic picture for the American economy, then a nice big rally should follow when, or if, a fiscal cliff deal is done.

I think they will cut a deal and let me remind you what Winston Churchill said of our US buddies: “You can always count on Americans to do the right thing - after they've tried everything else.”

Important information:This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

Watch more from Peter on SWITZER TV.

Published on: Wednesday, November 28, 2012

blog comments powered by Disqus

Today on Switzer

  • skynews9080410038

    Marcel von Pfyffer

    Video

    Marcel von Pyffer from Arminius Capital joins Switzer TV to discuss the poor-performing European economy, which continues to be a clear threat to rising stock markets. (Broadcast Thursday 21 August 2014.)

    See more

  • skynews9080404038

    Shane Oliver

    Video

    AMP Capital Chief Economist Shane Oliver rates the company reporting season so far – how is it stacking up? And should investors stop worrying about a correction? (Broadcast Thursday 21 August 2014.)

    See more



  • StockBoard2_200x150

    Australian shares close slightly higher

    Inside Markets

    The Australian share market has closed slightly higher, finishing in the green in eight out of the past nine sessions.

    See more

  • skynews9078369038

    Richard Goyder

    Video

    While Wesfarmers’ profit grew 19%, topping analysts’ expectations, the company’s problem child Target continues to underperform. Wesfarmers’ MD Richard Goyder explains the good and the not-so-good. (Broadcast Wednesday 20 August 2014.)

    See more


Subscribe_normal_normal

  THE SWITZER FEED
Pixel_admin_thumb_300x300 Pixel_admin_thumb_300x300 Pixel_admin_thumb_300x300 Pixel_admin_thumb_300x300 Pixel_admin_thumb_300x300 Pixel_admin_thumb_300x300