A Bush victory is viewed as a near-term positive for the stock market (the opposite for bonds). The bottom line is that the pro-business candidate appears to have won. Perhaps how investors should be looking at the situation is to consider what was likely avoided with a Kerry defeat-basically, a potential return to a more regulated policy environment:
* With respect to the FCC and media ownership rules (the election results is likely to be constructive for newspapers).
* With respect to the environment and emission standards (the election results is likely to be positive for everything from utilities to coal producers to heavy manufacturers to autos).
* With respect to drug pricing (the election results is likely to be constructive for the pharmaceutical sector).
Kerry's proposal that now appears unlikely is the proposed 11% hike in the minimum wage to $7.00/hour-this may have been a margin crimper for low-end retailers. Also now appearing unlikely are a repeal of tax relief for individuals making over $200,000 a year-a proposal that would hardly have been bullish for high-end retailers, and the possible repeal of dividend and capital gains tax reduction (positive for financials).