Why a Republican victory may not be a good thing for the market

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We fail to see why the market thinks a Republican victory is a good thing, other than a possible extension of the Bush tax cuts.  More important than the Congressional races, Republicans can pick up 7  Governor seats in this election.(http://www.realclearpolitics.com/epolls/2010/governor/2010_elections_governor_map_no_toss_ups.html)

Based on the success of Gov. Chris Christie in NJ, we would expect that many of these new Republican Governors would follow his lead and get tough on spending.  How does this help corporate America?  Does stopping construction of the NY-NJ tunnel help construction companies?  No it doesn’t, but it is prudent and will help in the long run.  Bringing back fiscal sanity to our government will increase investor confidence in the long run but may cause some short term pain.  Unfortunately, Wall Street just cares about the short term.