Ever wonder why your stock portfolio continues to languish in the face of all this good economic data? It’s because the investing community sees the Democrat Party’s assault on corporate America… a shakedown racket if you will… and is hesitant to get fully invested in this country.

That’s the main reason the so-called tech bubble burst in the late nineties. The Justice Department, controlled by the Democrats at the time, went after Microsoft because Bill Gates had shifted his contributions to Republican Party candidates in the election of 1996.

The message was quite clear and sent a chill through the investment community… get out! If an American Cinderella success story can get attacked by a political party for no legitimate reason then it’s time to cast a wary eye toward investing in American business. The markets hate uncertainty and political chicanery is just that. Within days after the attack on Microsoft the market began its slide.

In early 2005, things were very good economically in this country. It’s even more amazing when you think of the economic hit the U.S. took on September 11, 2001. But in 2005 another message was sent by the Democrats. Walmart has been a target of the Democrats for awhile. Walmart has weathered those assaults well, much to the anger of the politicians. Why don’t the Democrats like Walmart, another American success story? Because they support Republican causes. So when Maryland, a state controlled by Democrats, recently passed legislation requiring any employer over 10,000 employees provide a certain level of health insurance or pay 8% of gross wages to the state of Maryland, another chill went through the investment community. Walmart was the clear target since it was the only company in the state with over 10,000 employees. Within days once again the stock market tanked.

Similar hostile legislation has been proposed in New Jersey and Pennsylvania.

The investment community is getting the message. If the Democrats ever get back in power at the national level they will assault American companies and try and destroy them unless companies support the Democrats and bow to their policies; a sort of blackmail if you will. This is not healthy for a good investment environment. It is corruption of the highest order. The Democrats like it that way. They don’t want you to like investing in the stock market. They don’t want you to be successful in that way. Because if you are then you are independent and don’t need to depend on the Democrats and their socialist agenda.

But what makes matters worse is the timid Republicans. They are unwilling to stand up to this tyranny. They sit cowardly by and let America be attacked, not from without, but from within. It is a pathetic sight to see the Republicans playing the Democrats’ game of delay and obstruct when the Republicans hold all the cards and have the power to act. The Democrats are winning. Every day of obstruction and bullying is another day closer to the next election and what they hope will be a return to power.

The investment community sees this. One political party will attack our investments and the other political party will do nothing to defend them. The safe play is to wait on the sidelines. Unfortunately that plays right into the hands of the Democrats. By standing on the sidelines investors cause the economy to slow down as capital dries up. And the Democrats are hoping this is soon enough to cause a real economic downturn which they believe will sweep them back into power.

So beware. Like defeating the terrorists from abroad, we defeat them at home by digging in, taking some risks, and keeping the economy moving. There is more than the ballot box at our disposal. Keep making their doom and gloom tricks look silly. Why not beat back their attacks by giving Walmart and Microsoft their best year ever? (For the record, I don’t own stock in either company.)

If the Democrats prevail, even more companies will move overseas where the climate is better and businesses are desirable. But if the Republicans stand up to this extortion and defend American enterprise, as Maryland’s governor Ehrlich just did, you will see the market and your investments become very healthy once again. In spite of the media spin, this stock market is a political gauge. This past robust week in the market reflects the sense that the Republicans might finally stand up to the tyranny of the radical left.

As Dems shore up base, GOP goes ‘raiding’:

[Mehlman]’s playing in our sandbox,” says Steve Rosenthal, CEO of America Coming Together, a group formed to energize and turn out Democratic voters

(Referring to Mehlman’s frequent appearances at demographically Democratic strongholds).