Conventional wisdom has it...

...that a big Democratic victory tomorrow (not just an Obama victory, but a significant pickup in Senate and House seats) will be bearish for the stock market. The thinking is that Americans like a divided government to act as a check on the more extreme impulses of the other party. I think this was true in the past, when the public wanted the Federal government to do less, but I don't think it will be true in this election. I think the general sentiment is that things are so dysfunctional now that people want the government to take action to fix our various problems. So if the Democrats win big tomorrow, this blog writer is looking for a big rally in the equity markets.