Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Chinese Tech Stocks CCP Paranoia and Best AI Tech Stocks ETF - 26th Oct 21
Food Prices & Farm Inputs Getting Hard to Stomach - 26th Oct 21
Has Zillow’s Collapse Signaled A Warning For The Capital Markets? - 26th Oct 21
Dave Antrobus Welcomes Caribou to Award-Winning Group Inc & Co - 26th Oct 21
Stock Market New Intermediate uptrend - 26th Oct 21
Investing in Crypto Currencies With Both Eyes WIDE OPEN! - 25th Oct 21
Is Bitcoin a Better Inflation Hedge Than Gold? - 25th Oct 21
S&P 500 Stirs the Gold Pot - 25th Oct 21
Stock Market Against Bond Market Odds - 25th Oct 21
Inflation Consequences for the Stock Market, FED Balance Sheet - 24th Oct 21
To Be or Not to Be: How the Evergrande Crisis Can Affect Gold Price - 24th Oct 21
During a Market Mania, "no prudent professional is perceived to add value" - 24th Oct 21
Stock Market S&P500 Rallies Above $4400 – May Attempt To Advance To $4750~$4800 - 24th Oct 21
Inflation and the Crazy Crypto Markets - 23rd Oct 21
Easy PC Upgrades with Motherboard Combos - Overclockers UK Unboxing - MB, Memory and Ryzen 5600x CPU - 23rd Oct 21
Gold Mining Stocks Q3 2021 - 23rd Oct 21
Gold calmly continues cobbling its Handle, Miners lay in wait - 23rd Oct 21
US Economy Has Been in an Economic Depression Since 2008 - 22nd Oct 21
Extreme Ratios Point to Gold and Silver Price Readjustments - 22nd Oct 21
Bitcoin $100K or Ethereum $10K—which happens first? - 22nd Oct 21
This Isn’t Sci-Fi: How AI Is About To Disrupt This $11 Trillion Industry - 22nd Oct 21
Ravencoin RVN About to EXPLODE to NEW HIGHS! Last Chance to Buy Before it goes to the MOON! - 21st Oct 21
Stock Market Animal Spirits Returning - 21st Oct 21
Inflation Advances, and So Does Gold — Except That It Doesn’t - 21st Oct 21
Why A.I. Is About To Trigger The Next Great Medical Breakthrough - 21st Oct 21
Gold Price Slowly Going Nowhere - 20th Oct 21
Shocking Numbers Show Government Crowding Out Real Economy - 20th Oct 21
Crude Oil Is in the Fast Lane, But Where Is It Going? - 20th Oct 21
3 Tech Stocks That Could Change The World - 20th Oct 21
Best AI Tech Stocks ETF and Investment Trusts - 19th Oct 21
Gold Mining Stocks: Will Investors Dump the Laggards? - 19th Oct 21
The Most Exciting Medical Breakthrough Of The Decade? - 19th Oct 21
Prices Rising as New Dangers Point to Hard Assets - 19th Oct 21
It’s not just Copper; GYX indicated cyclical the whole time - 19th Oct 21
Chinese Tech Stocks CCP Paranoia, VIES - Variable Interest Entities - 19th Oct 21
Inflation Peaked Again, Right? - 19th Oct 21
Gold Stocks Bouncing Hard - 19th Oct 21
Stock Market New Intermediate Bottom Forming? - 19th Oct 21
Beware, Gold Bulls — That’s the Beginning of the End - 18th Oct 21
Gold Price Flag Suggests A Big Rally May Start Soon - 18th Oct 21
Inflation Or Deflation – End Result Is Still Depression - 18th Oct 21
A.I. Breakthrough Could Disrupt the $11 Trillion Medical Sector - 18th Oct 21
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

UK General Election Forecast 2010 Hung Parliament and Lib-Lab Pact Probable

ElectionOracle / UK General Election Apr 18, 2010 - 12:53 AM GMT

By: Nadeem_Walayat

ElectionOracle

Best Financial Markets Analysis ArticleThe clear winner in the first Prime Ministerial debate was Nick Clegg, the primary reasons for this were:

a. David Cameron had been coached by tory strategists into NOT attacking his opponents and to try portray the Conservative party as the friendly party which did not work.

b. Gordon Brown embarrassingly trying to ingratiate himself with the Lib Dem leader. How many times did he say "I agree with Nick", only to be immediately rebuffed by Nick Clegg.


Given the robotic performances of Brown and Cameron by contrast Clegg came across as very human.

The net result of this was to virtually immediately boost the Liberal Democrats by an average of 5% in the opinion polls which firmly pushes the election results into hung parliament territory.

The latest opinion poll by ICM for the Sunday Telegraph puts the Conservatives on 34%, Labour on 29% and Liberal Democrats on 27%.

The Conservatives require an election result of a minimum of 40% to win. Whilst the Conservatives were recording a poll leads of 38% and 39% there was still a chance of an overall majority due to the margin of error and the fact that the election result will be decided in the bitterly fought out 120 of marginal constituencies (20%), however losing 4-5% for a drop to 34% means the Conservatives would have virtually a zero chance of an overall majority.

The Liberal Democrats should not be prematurely celebrating as Britain's first past the post system ensures that being third in the polls does NOT translate into many more seats i.e. the latest opinion poll would translate into Labour being the largest party in parliament on 280 seats, Conservatives second on 260 seats and Liberal Democrats third on just 72 seats, so the 27% poll does not translate in anywhere near the gains that some Lib Dems may be deluding themselves of, to achieve a political earthquake the Liberal Democrats need to be polling 2% ahead of Labour.

However the Liberal Democrats opinion poll boost may prove short lived as especially worried Conservative party strategists sharpen their knives and go on the offensive against Nick Clegg in the remaining two prime ministerial debates. Given Nicks lack of experience there is a high probability that the Liberal Democrat poll surge will mostly evaporate over the next 2 weeks, therefore I am holding off making any revision to my long standing and unchanged UK general election forecast as of June 2009 which called for small Conservative majority of 343 seats against Labour on 225 and Liberal Democrats on about 45.

Clearly from a strategic point of view a rise in the Lib Dem vote plays into the hands of the Labour party that will ironically retain more seats the better the Lib Dems perform in the election (upto a limit) as the Liberal vote will prevent Labour seats from swinging over to the Conservatives. Therefore Gordon Browns ever calculating mind may have conceived of such a strategy on the realisation that a Labour win is not probable and therefore Labour is ingratiating itself with the Liberal Democrats both to maximise Labour seats and in advance of a post election Lib-Lab pact that on the recent polls would but the Lib-Lab government on 352 seats.

Labours strategy puts the Conservatives at a huge disadvantage as Conservatives pandering to a party that is to the left of Labour is not going to work and is just going to further dilute the Conservatives appeal amongst potential voters, therefore it will increasingly come down to the Conservatives having to battle against both Labour and the Lib Dems, which increases the probability of a hung parliament.

Labour will shortly be playing its Election ace which will be an economic growth surprise to the upside on release of UK GDP Data for the 1st quarter of 2010 on 23rd April as per the forecast (31 Dec 2009 - UK Economy GDP Growth Forecast 2010 and 2011, The Stealth Election Boom ) and in depth analysis in the Inflation Mega-Trend Ebook (FREE Download) and illustrated by the below forecast graph that called for strong economic growth for 2010.

Which is set against the mainstream press / academic economists expectations of a potential double dip recession -

Daily Mail - British Chambers of Commerce - Jan 2010

Britain could be pitched into 'double-dip' recession because of a 'disturbing weakness' in the services sector, the British Chambers of Commerce has warned.

Despite the recent bounce in manufacturing, activity across the broader economy weakened between October and December, compared to the previous quarter, the BCC reported

There was no 'conclusive evidence' that the recession had even ended by the end of 2009, it added.

David Frost, the BCC's director general, said: 'We're on the cusp of recovery, but not firmly out of recession.' The UK could even succumb to 'double-dip recession' unless businesses regain the confidence to start investing for the future, he said.


Gaurdian - Feb 2010

Double-dip recession may not be far off

With retail sales, mortgages, business loan approvals, output and confidence so low, the double-dip may come sooner than expected

New Statesman - David Blanchflower - Jan 2010

Hold on tight, it’s the double dip

A double-dip recession remains possible and with it far higher unemployment

This is definitely turning out to be an exciting and highly volatile election with voter loyalties in constant flux as a consequence of the expenses scandal. The too hard to call election is less than 3 weeks away, the likes of which we have not seen since the 1992 surprise when Labour blew their virtually assured election win of ousting John Major primarily as a consequence of Neil Kinnocks triumphalist public performance at the Sheffield Arena just prior to voting day which turned many voters away from Labour at the very last minute.

It will be interesting to see if the Lib Dems will be able to hold on to a poll rating anywhere near as high as today's 27% for another 19 days.

Source: http://www.marketoracle.co.uk/Article18740.html

By Nadeem Walayat

http://www.marketoracle.co.uk

Copyright © 2005-10 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 20 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis specialises on UK inflation, economy, interest rates and the housing market and he is the author of the NEW Inflation Mega-Trend ebook that can be downloaded for Free. Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication. We present in-depth analysis from over 500 experienced analysts on a range of views of the probable direction of the financial markets. Thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Nadeem Walayat Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in