Pros Say: Obama Win = Oil Up, Dollar Down
On the day the U.S. welcomed its 44th president, European markets opened lower as the focus returned to the slowing economy. CNBC's experts weigh in on what Democratic candidate Barack Obama's victory means for the markets and the economy going forward.
Democratic Win Positive for Markets
Savanth Sebastian, equities economist at Commonwealth Securities believes a democratic win is positive for the U.S. markets.
Oil Up, Dollar Down, Obama Wins
The election aftermath will involve many more fiscal policies, and the more spending seen, the bigger the chances are of the dollar going down, and as a result, oil prices will increase and supply issues will amplify, according to Jonathan Barratt, MD at Commodity Broking Services.
Rules Will Be Rewritten
"Going forward, what the markets have to anticipate is going to be a substantial rewriting of the rules of the game. A real philosophical discussion about should the banking system be like a utility, paid like a utility, regulated like a utility, or should it have the entrepreneurial innovative drive that it has in the rest of the economy? And the way you set those rules up will define which of your views will make and will lose money going forward," Dr. Philippa Malmgren, president of Canonbury Group & former economic advisor to President George W. Bush, said.
Still Cautious on ‘Skittish’ Markets
"Markets have been unforgivinly pessimistic and impatient and we've got 77 days before the new president steps in and that's several light years in terms of what the market can do," Jeffrey Hogan, managing director of business development at BGC Partners, said. "The tone of the markets is very skittish. The markets remain dysfunctional, even the government bond markets. So I think we have to remain very cautious."
Worst Global Growth Since WWII?
In 2009, the global economy may register its slowest year of growth since the end of WWII, opines Stephen Halmarick, MD of economics at Citigroup.
Incredible Value in Stocks
Go bananas! There is incredible value in stocks now, says Clem Chambers, CEO of ADVFN, who has recently turned long-term bullish on the markets.