Obama wins, stock markets crushed

Looks like an economic recovery was priced in with a Romney win. Market bets were wrong, and Obama won.

It's a rush to safe havens again as the economy stagnates and declines for another four years. We're looking at increased existing taxes and more new taxes, more regulation, and four more years of divided Congress and a divided American population.

This will make eight years of economic decisions based on ideology rather than business fundamentals. This is quite a bit of fundamental economic damage to fix in the distant future.

Stocks
Dow 12,948.09 -297.59 -2.25%
Nasdaq 2,940.59 -71.34 -2.37%
S&P 500 1,397.70 -30.69 -2.15%

reply to post by nighthawk1954


Hmmmmmmmmm it says in the ftse that USA is up 4.69 (0.78%)
maybe you should check you facts before posting.
Here is the Link

I don't think the markets are linked to any potential economic recovery. The economy is in a mess yet the markets are still actually quite high. It may just be semantics but I don't think the markets are down because Obama won - they are down because Romney didn't. Wall Street was hoping Romney would win because his policies would have favored them - not the middle class.

There is no doubt that Obama AND the house AND the senate all have their work cut out for them. You can't blame just Obama for the economy, all levels of US government do nothing but nit pick and squabble over everything. The 'fiscal cliff' is coming and if they all don't work together then over you go.

Now that the election is over, everyone should stop complaining about who won and who lost. It is time to start pressuring all of you senators, congressmen etc. etc. to start to compromise and fix things... which is what they were actually elected to do!

Do you have any numbers or figures to back your point or are you just going to bash on Obama all day without any clear argument? I just have to know so that I can know to actually check back onto this topic or just move on with my day.

Originally posted by fenceSitter
I don't think the markets are linked to any potential economic recovery. The economy is in a mess yet the markets are still actually quite high. It may just be semantics but I don't think the markets are down because Obama won - they are down because Romney didn't. Wall Street was hoping Romney would win because his policies would have favored them - not the middle class.

There is no doubt that Obama AND the house AND the senate all have their work cut out for them. You can't blame just Obama for the economy, all levels of US government do nothing but nit pick and squabble over everything. The 'fiscal cliff' is coming and if they all don't work together then over you go.

Now that the election is over, everyone should stop complaining about who won and who lost. It is time to start pressuring all of you senators, congressmen etc. etc. to start to compromise and fix things... which is what they were actually elected to do!

I don't know much about American politics, but well said sir.
I think the same could be said to be true the world over.
S&F for you

The drop in the markets has to do with Europes latest econmic bad news and nothing to with Obama. Obama staying in office would not effect the markets as it is nothing new. A Romeny win would also have had little effect as nobody knows what if anything would change, but and change would be long down the road.

reply to post by MrSpad


As someone who works in a major investment banking firm, I can tell you 100% that the economic state is directly affected by the polotical state.

The economy is driven by people's perception and faith in the economy and financial markets....

Under the current administration, they do not have that faith or security.... plain and simple.

reply to post by MrSpad


True in part, but Bloomberg Business just said it is mainly a reaction to the election especially increased regulation. Even healthcare is down.

The other thing they just brought up is tax increases on dividends.

Next they will be talking about the effect of the election on the culture of innovation.

Go and get your information from informed sources.

reply to post by MsAphrodite


obama's expected to ditch the reduced tax rate on long term capital gains (sales of stocks) as well as the qualified dividend tax rate (divs on stocks held for long term). Wall street's sell off is, partially, related to this. Dividends and capital gains becoming more costly resutls in less investors as they are no longer willing to take the risks associated with owning stocks if the benefits are not favorably taxed.

The health care sector is down because of the above as well as the fact that there is no chance of obamacare being repealed in the next four years.

reply to post by Crakeur


Well said.

The economy is not going to recover any time soon.

Soon people will be pointing fingers and probably still blaming George Bush.

Originally posted by MentorsRiddle
reply to post by Crakeur

 

Well said.

The economy is not going to recover any time soon.

Soon people will be pointing fingers and probably still blaming George Bush.

Yes.....
BDS(bush derangement syndrome) will live on.

Stocks have faired quite well under Obama.
Anybody care to look at the late 2008 average vs now?
About 6400 vs today's 12500

reply to post by Dbriefed


Misleading title, and you start a thread with something that you could have just stated as your opinion in any one of the number of threads on Obama's re-election?

This is not thread-worthy.

Originally posted by sealing
Stocks have faired quite well under Obama.
Anybody care to look at the late 2008 average vs now?
About 6400 vs today's 12500

When you print 80 billon dollars a month and inject it into the economy, the stock market will go up, but your purchasing power goes down. Hence high food prices and gas prices. But who cares right, Obama knows what to do....

Originally posted by camaro68ss

Originally posted by sealing
Stocks have faired quite well under Obama.
Anybody care to look at the late 2008 average vs now?
About 6400 vs today's 12500

When you print 80 billon dollars a month and inject it into the economy, the stock market will go up, but your purchasing power goes down. Hence high food prices and gas prices. But who cares right, Obama knows what to do....

Yep that makes sense, arguing and debating with these children thou, is not worth your time, they're polarized and have been taught they are right, and we are wrong and the bad guys..

Its seems to be some kinda survival mentality that is a way to cope with suffrage...

Its obviously a very ignorant school of thought, since learning is not a gain from it...

glad My stocks are worth more in last 4 years, but a loaf of bread costs double too, wheres the gain?

The drop in stocks has nothing to do with the election, if you look at the technicals they have been showing some bearish signs for a while now.
The markets would have probably been down yesterday had it not been election day but the markets are very rarely down on election days.
We've been long overdue for a correction, and economic data has shown some serious weak signs recently when you look past the cheer leading.

The signal to sell was given four weeks ago with the Jessica Ridgeway story.
Today's selling took the Dow Jones Industrial Average down below its 40-week moving average.
On a more mundane note the Dow also closed below the 200-day moving average which is followed by a lot of traders.

I think the selling is going to continue until late January 2015.

I am by no means intelligent when Wall Street is concerned, but I had read a Yahoo News post early this morning (which I can't seem to find now) in which they were discussing the dissapointment and the financial backing of Romney by Investors of Wall Street. Perhaps the numbers are down now because the man Wall Street had faith in, toward the end of this campaign, is not the president today...? I wish I could find that article now... I found it a bit disturbing after reading that bit and then seeing the stock market numbers today.