On CNBC's Behind the Money blog on Wednesday, Fast Money executive producer John Melloy promoted a left-leaning theory as to why the stock market has been on the rise lately: "While President Obama may not be Wall Street's ideal candidate, stock prices are rising on growing expectations he will be re-elected this November."
Melloy pointed to long-term political certainty as a reason for investor optimism and added: "The surge in President Obama's chances at a second term also have coincided with a string of better-than-expected domestic economic data this year, including an all-important drop in the unemployment rate."
Noting a rise in consumer confidence that "blew away economists' expectations," Melloy remarked: "That contrasts with the Republican debates, many of which have centered on social issues."
As evidence of the pro-Obama market analysis, Melloy cited chief market strategist for Virtus Investment Partners Joe Terranova: "The Romney, Santorum, and Gingrich infighting has done irreparable harm to the Republican Party's ability to present an alternative economic platform to voters...As long as manufacturing and other key data continues to improve, the market is growing comfortable with Obama being President again."
Only near the end of the article did Melloy acknowledge dissenters: "Some feel it is still way too early to predict what will happen in November and that Obama’s policies will be harmful to business, causing a sell-off in 2013 if he is re-elected."
A quote was included from Stephen Weiss of Short Hills Capital, who observed: "As to penciling in Obama, while the market likes certainty, certainty of bad news will not be good for the market."
This is not the first time the press has predicted a Democrat in White House would mean a stock surge. Back in February of 2004, a Reuters story declared: "Kerry Presidency Seen a Boon for U.S. Markets."