Wall Street will reward a Romney's win with an S&P price to earnings ratio of 25. The Fed will reward an Obama's win with a price to earnings ratio of 30. The stimulus coming from China after their once a decade leadership transition Nov8th sets the floor.
Bloomberg “ Goldman Says Brazil Traders Wrong to Bet on 2013 Rate Increase.
Policy makers are likely to keep the benchmark Selic rate stable through the end of 2013, Leme said today during a speech at a Brazilian pension fund congress in Sao Paulo…I’m more dovish,”
and from BSBR:
fwiw DowJones: " "I am convinced that delinquencies peaked in the third quarter," said Mr. Portela. "Delinquencies will begin to decline, for us and for the banking system, in the fourth quarter."
Mr. Portela said Brazil's financial industry was becoming more competitive in the face of lower interest rates and tighter interest-rate spreads. Over the last year, Brazil's central bank has reduced its Selic base rate from 12.5% to the current 7.25%. "
Glenn Hubbard is a favorite of Romney's…Hubbard has suggested that Bernanke might remain in the job…changes would likely be gradual, as a new chair will still need the support of the Federal Open Market Committee.
btw... no one is touting economic improvement. Sloppy earnings will do. We’re muddling through. Central Bankers have plenty of room to keep the punch bowl.
Companies ahead of the curve learning to live under a compressed gross margins environment and higher rates like WHR or GFA will do better.