After experiencing a downturn last week the U.S. stock market has taken off on Monday and Tuesday in anticipation of the mid-term elections.
At the end of last week many investors were thinking it was the beginning of a major decrease in the value of the stock market. Tuesday morning the market reached a peak and then some of the air came out of it the remainder of the day.
Remember that most investors in the stock market consider a Democratic victory bad for the economy because historically the Democrats have favored more spending than Republicans. However, the Bush Administration has made a run for the Democrats money in his bloated budget. If the Dems win they may spend like they have historically, but I think in this case they will be more careful stewards of the U.S. taxpayers money.