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Victor Sperandeo of Alpha Financial Technologies breaks down the impact of the presidential election on the stock market.
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Right -- the company now is trader -- for an DO joining us from Dallas right now.
Hi I'm knows that you say there is actually no doubt about it President Obama loses in November.
Not addressed in your reasoning for that point of view I want to know what you think happens when the President Obama loses you think there's a stock market rally -- Absolutely.
And it's very simple -- you have a huge amount of reserves in the system.
Ben Bernanke is provided that nobody's using -- wire they're not using it.
They don't know what's gonna happen they don't know -- corps us they don't know what new scheme is this Obama administration will come up with.
But whatever they come up with -- it's not good for business so if you eliminate that all that money that's sitting in the banks now -- zero interest rate policy is provided.
And -- very very low if you will velocity of money you lowest since the early -- sixties.
Everyone's gonna stand up go to the bank start doing things creating things and it will be back to America 101.
Do you think that if the polls -- to show Mitt Romney with a significant lead as we head into the -- -- and very -- fall if the polls show Romney clearly out front.
At that point you think the market starts to move -- Absolutely that's been my call -- it did in the polls at this stage and before this stage don't really matter a lot.
They matter far more once they get into debates and you get close into the election that's when they become far more significant.
Let's suppose you're wrong.
Suppose the President Obama wins a second -- by whatever margin but he wins do you think the opposite happens and the Dow goes straight down.
Absolutely look what it's done under his leadership and what is he done in the last four years or three and a half years.
He get a stimulus program that didn't work group may have saved the system to a degree but it didn't work.
It didn't create growth to -- the lowest growth since you can go back to to Hoover.
You what would also reduce health care plan it's gonna get thrown out so we wasted a year and a half on that and that's gonna get a lot of publicity it's gonna turn -- a lot of people.
Number three he did Dodd-Frank.
That's still money -- completed you don't even know what it is it doesn't help the average citizen to the end knowledge and it basically using hindrance to business.
It could have been done far more simply and easily -- you know bring back.
Banks can trade their own account would have been simple one page you -- made -- one page so he really he's done nothing.
I think that's gonna come out in these debates and I think it's gonna come out so in the in the forthcoming months and therefore.
He's going to lose and things are gonna get better.
I need to number on this let's suppose November 7 day after the election.
Obama has lost Mitt Romney is the new incoming president and the Republicans sweep the senate and take control that as well.
How much does the Dow go off 151000.
Well.
Again you know if you've had me on the show number times you know I never predict -- we are things go because that's an emotional.
Concept to try to decide.
But I would say that you're the and I'll I'll I'll just say up substantially.
But I can't put a number on.
-- -- -- -- we appreciate -- being with us we'll see how this thing turns out will we -- thank you victories is -- Now you wanna.
