Some experts say a power split in Washington is just what investors need. Others argue that the results of the past 61 years don't bear that out. Maybe, it's really the Fed's monetary policy that really dictates which direction stocks go.
With the two houses divided, the parties will have to compromise. But will they? The challenge will become acute if the Fed's latest stimulus gambit falls short, leaving the economy gasping. The GOP's aversion to spending could be tested.
While American pols deal in brinksmanship over taxes and the economy, China's leaders are smoothly gaining influence on the world stage. Witness the goodwill generated by Premier Wen Jiabao on his recent whirlwind tour of Europe.