bizjournals: Bush vs. Kerry: Election '04

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So how would stocks fare underr President Bush or John Kerry Wall Street is bettingon Bush. Throughj Aug. 2, the securities and investment community hadcontributer $7.2 million to the president's re-election, compared with $2.8 million to Kerry, according to the Center for Responsive Politics. A survey of CFOs at U.S. companiexs found 58 percent believe Bush would be better for thestoc market, compared with 12 percent who say Kerry would. The other 30 perceny say it won't make a difference. Many corporat executives fear Kerry's tax, trade and regulatory polices wouled stifle growth and hurtstock prices.
For Kerry proposes rolling back Bush's tax cuts for individuals who earn morethan $200,000 a This would choke off importantt investment capital, says Raymond Keatinfg of the Small Business Survivao Committee. High-income individuals "are far more likely to investtheir money, whether it be in theif own business or in other businesses," Keatinfg says. "Raise taxes on investing and risk-taking, and you get less investint and risk-taking." Kerry, however, wouled eliminate capital gains taxeson long-term investments in small "That's a big deal," says Wade Randlett, who runs San Francisco Web design firm Dashboard Technology.
Risking your money in a job-generatingt entrepreneurial venture, he says, "is not the same thingb as putting $100,000 in Cisco stock."" Meanwhile, if history is any a Kerry victory might be good for thestocjk market. Since 1927, returns on stocks have been 5 percentg higher under Democratic presidents than underRepublican presidents, accordinbg to a study by two UCLA financ e professors. "I sell when a Republican comes in and buy when a Democratycomes in," says Jere who headed the Small Business Administration'se Office of Advocacy under President Clinton. "I find that to be a reasonably smart thing todo historically.
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