Home / General / BULLY PULPIT Arbitrage!



Yglesisas notes that fast-food stocks took a beating today after Obama came out in favor of higher minimum wage indexed to inflation.   Doesn’t this present a substantial opportunity for those who understand that the United States doesn’t have a parliamentary system?   I wouldn’t say that Obama’s position-taking means absolutely nothing, but the odds of Democrats re-taking the House in 2014 are so low that it seems crazy for there to be a non-trivial discount in stock prices for fast-food stocks.    (The reaction of the market does make clear, however, why enacting this salutary policy will be enormously difficult.)

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