I never would have thought Politics and the fed could have sooo much influence on the markets. I always thought the impact was there, but never to the degree that the influence has been over the past 5 years. Earnings seems to be an individual stock factor, but no match for what the politicians and fed have over the overall market.
The last 3 years have been dictated by Euro politics, and when EU quiets down, the Doves in the fed and on capital hill rule.
It was the same when the hawks were in power. The great orator, Greenspan, with the GOP hawks brought the markets to its knees out of unsubstantiated fear of inflation (thanks to the Carter years).
I wonder if Geitner will be as Dovish, or perhaps more Dovish, than Bernanke?