Does the stock market hate Democrats? Not if you asked pundits less than a month ago, when insurance-industry stocks were rising in tandem with health care reform, setting off liberal worries. But CNBC analyst Jim Cramer--back on his feet after a fierce drubbing from Daily Show host Jon Stewart--predicts a Wall Street surge if Democrat Martha Coakley is dealt a defeat by Republican Scott Brown in the Massachusetts Senate race.
What does a Brown election mean larger than this? Well, first you're going to get a knee-jerk rally in all the so-called penalized stocks -- the HMOs, the drugs, the medical device-makers. I call it "knee-jerk," though, because these stocks have been on fire for months. ... More important, though, I think investors who are nervous about the dictatorship of the Pelosi proletariat will feel at ease, and we could have a gigantic rally off a Coakley loss and a Brown win. It will be a signal that a more pro-business, less pro-labor government could be in front of us
(Via Joe Wiesenthal at Business Insider)