Elephants on the March
Investors would welcome the increasingly likely prospect of Republican victories in the November election, says Steve Forbes, chairman and CEO of Forbes.
Steve, what do you make of all the political action, since all the other candidates have now dropped out mostly?
Yeah, Ron Paul did it.
Yeah, so now we’re facing the final stretch. And according to reports, each side is going to spend a billion dollars. What will that do to the markets? When will that intensify during the season between now and November?
Well, I think people in the markets are going to really start focusing, as the summer wears on, on speculation about who is going to be the VP—will Obama dump Biden and that sort of thing. If it looks like the Republicans have a chance at least of winning the Senate and the White House, I think the market is actually going to respond, which of course President Obama will take credit for.
I believe that Romney will win the election, and Republicans will win control of the House. You saw in the Wisconsin primary a couple of weeks ago, even though he had no opposition, Scott Walker, more turned out in the Republican primary than the Democrat primary.
I’m optimistic, and one good thing is the Romney team so far has been playing an A-game. Every time the Obama people come out and hit him with something, they come back and hit even harder. They have made a big thing about how Romney mistreated the family dog on that trip where he put him on top of the roof in the cage, and the Romney camp replied, well, when Obama was in Indonesia he ate dogs. (laughing) They’re not going to wait to respond.
Do you see any chasms in the Democrat party?