Sage Advice Quarterly Market Review 1Q2004

As the campaign season swings into full gear, the Democrats, after they settle on a candidate, will be searching for a mantra that reflects the public’s discontent with the Bush administration. For a while early last year, it looked like the sluggish economy might fill that bill, enabling the Democratic candidate — whoever it might be — to invoke the “it’s the economy, stupid” phrase that resonated so effectively in 1992 and helped undermine the reelection of Bush Sr. However, the surge in growth over the past six months is making the economy more of an ally than an albatross for the incumbent, and the Democrats may have to scurry for a different theme to resonate with the public.