Stocks Support Sequester
Judging from the stock market, Republicans should keep doing exactly what they’re doing when it comes to the sequester. Well, almost exactly: it would be better if they didn’t implicitly buy into any of the Obama administration’s sky-is-falling rhetoric by calling, in near-panicked tones, for meetings with the president or for the Senate to do something.
But still, based on people putting their money where their brains are, what’s happening now is basically fine, which is more than enough for a Republican Party that has been routinely outmaneuvered by this president and that often shows less confidence than a 40-year-old virgin visiting the Chicken Ranch.
In the 11 months since the failure of the Simpson-Bowles Commission in March, 2012, the S&P 500 index is up approximately 7%. More interesting, over that same time period, the defense and aerospace industry (as represented by the Exchange Traded Fund, PPA, which holds many of these names) -- those companies which the administration is putting forward as likely to suffer pestilence, famine, and huge job losses -- is up the same percentage as the broader market.
Please read the entirety of my article for the American Spectator here:
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