last week's sharp three-day market surge can only mean that Wall Street is banking on a victory from Republican Mitt Romney.
That's the logical interpretation one can draw from a rally amid conditions that otherwise would demand a selloff, Morgan Stanley chief U.S. equity strategist Adam S. Parker said in an analysis that asserts there is no other reason now to like stocks than a Romney win.
investors are betting that Romney will unseat President Obama and bring a more business-friendly environment to the White House.
"At the end of the day, we are not really worried that Europe is going to be 'solved' or that its economy will strongly grow. We also don’t think strong corporate profitability relative to expectations will save the day," he said.
"To us, the biggest bull case for US equities is based on the huge cash balances and the potential belief that they will be more actively and productively deployed. The biggest possibility here would be Romney winning the presidential election."
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