Thomas Sowell, one of my favorite economists, recently declared that “markets readjust themselves for a reason. That reason is that people pay a price for their misjudgments and mistakes”. I think that argument goes a long way when trying to describe what’s going on in American politics in 2008. Strange things are happening. The Democratic presidential candidate will be either a woman or a black man. White people from both parties are voting for the black man in droves. Rudy Giuliani’s September 11th chest pounding earned him an early exit from the race. John McCain, a very liberal republican any way you cut it, has still managed to become his party’s main candidate. Could that signal a major change in republican values? Strange things are indeed happening.

Major political market corrections only happen every few decades. The 60’s brought JFK, Reagan brought us the 80’s, and Obama is the leading indicator to watch in this 2008 correction. Never have the president and congress had such pathetic approval numbers, 30% and 22% respectively. This is akin to buying stocks at $100 and watching them fall to $30 and $22. It’s time to cut losses and invest elsewhere with our votes.