The Obama Administration, through the quantitative easing policies of former-Federal Reserve Chair Ben Bernanke, focused on bringing back the stock market from The Great Recession. That was outlined by Bernanke in an op-ed in The Washington Post back in November of 2010. It is being continued by his successor, Dr. Janet Yellen.
The recent budget introduced by House Budget Committee Chairman Paul Ryan continues to the Washington, DC policy of being bullish for the stock market.
Both the Dow Jones Industrial Average (NYSE: DIA) and the Standard & Poor’s 500 Index (NYSE: SPY) had bull market years last year. Each is up this year. Big Oil such as BP PLC (NYSE: BP) is up for the year. It is the same with Big Pharma, too, as Merck (NYSE: MRK) has risen by more than 11 percent for 2014 (chart below). Small caps such as Quadrant 4 System (NASDAQ: QFOR), Premium Exploration (OTC: PMMEF), The Original SoupMan (OTC: SOUP), Premiere Opportunities (OTC: PPBL), Mondial Ventures (OTC: MNVN), CytoDyn (OTC: CYDY), and High Performance Beverages (OTC: TBEV) look very promising as each operates in a lucrative niche with a bullish outlook.
The Paul Ryan budget plan will be bullish as it commits to a balance budget within ten years, according to an article in The Wall Street Journal.
That will be bullish for the stock market for a variety of factors. When the Federal Government is not borrowing money, interest rates should fall. There is not as much competition in the capital markets. Demand is lower, so the price of money should fall. When there is a low interest rate environment, that is bullish for the stock market.
Low interest rates are why the Dow Jones Industrial Average has tripled over the last five years.
From Big Oil like Bp PLC and Big Pharma like Merck to promising small caps such Quadrant 4 System, SoupMan, Premium Exploration, Premiere Opportunities, Mondial Ventures, CytoDyn, and High Performance Beverages, House Budget Committee Chair Paul Ryan has introduced a very bullish budget for the stock market. Long term investors should be pleased.