I said it Tuesday night and I was right!

[Reverend Rick]

The stock market dropped sharply after the election results.

Dow drops sharply in post-election sell-off | Tulsa World

 

[Jayhawker Soule]

Did you short the market?

 

[Reverend Rick]

Did you short the market?

No, I am a long term investor and do not try to second guess the market day to day.

If I wanted to gamble I would go to Vegas.

 

[Reverend Rick]

If you want me to make another prediction, we are headed for a double dip recession.

 

[9-10ths_Penguin]

The stock market dropped sharply after the election results.

Dow drops sharply in post-election sell-off | Tulsa World

I think it's probably more valid to say that the stock market dip was because of electing a Republican House (or, more specifically, the prospect of having a House that will try to obstruct and work against the Senate and President with the "fiscal cliff" looming) and not any sort of commentary on Obama's policies:

There had been concern that the United States would have to endure a rerun of the protracted presidential election of 2000, but Barack Obama handily won a majority of electoral colleges votes.

However, the results still left Capitol Hill divided, with Democrats holding their majority in the Senate and the Republicans still in control of the House of Representatives. That could lead to a continuing logjam in policy-making, especially regarding the state of the country’s public finances.

"And that may not be great news for the markets, especially as there are no concrete signs that either Republicans or Democrats are any more willing to reach across the isle and compromise on the key components to real sustainable fiscal reform," observed Andrew Pyle, investment adviser at ScotiaMcLeod in Peterborough, Ont.

Also, the market cares about events that happen in other places, too:

The sell-off was also spurred by the European Union which downgraded its economic forecasts for the 27-country bloc. The EU's executive arm says it now expects the region's gross domestic product to contract by 0.3 per cent on an annual basis this year, rather than remaining flat as it predicted in the spring.

Source: Global Saskatoon | Stocks tumble, traders turn attention to fiscal cliff, Dow has worst day of 2012

 

[Reverend Rick]

I think it's probably more valid to say that the stock market dip was because of electing a Republican House

I don't think any investor was speculating that we would have a Democrat majority in the house, do you?

 

[ninerbuff]

I predict the 9ers win this weekend because of Obama winning. Had it gone the latter, I may have gone with the Rams.

 

[Gjallarhorn]

Self-fulfilling prophecy is the miraculous basis of economy.

 

[9-10ths_Penguin]

I don't think any investor was speculating that we would have a Democrat majority in the house, do you?

I think they may have expected a Republican Senate.

But again: I don't think that the market dip is a commentary on the economic soundness of the Democrats' platform. To the extent that it's about the US at all and not a reaction to events in Europe, I think it was the market saying "aww, crap: now the Republicans are in a position to play the role of obstructionist ******** again, and they'll cut off their nose to spite their face if you give them half a chance. We have no confidence that they won't just drive the country off the 'fiscal cliff' just to try to make Obama look bad."

 

[9-10ths_Penguin]

BTW - in more "it's not all about the US" news, the markets calmed down on the news that Greek voters haven't decided to get rid of their austerity program:

Greek vote helps markets calm after turmoil

There was more than one election this week.

 

[idea]

the stock market has crashed, and the layoffs have started...

Boeing plans to lay off 1,100 workers who build C-17s | 89.3 KPCC

O - and instead of closing loopholes to actually make the rich pay their fair share, they are going to be "accepting revenue" from the middle class... not who I voted for, but that's ok, I'm not materialistic, so it doesn't bother me too much.

 

[idea]

Did you short the market?

the election was so close, I was hoping for a different outcome on this We're hoping to get it back in the long term though... in another 4 years or so

 

[Dirty Penguin]

the election was so close, I was hoping for a different outcome on this We're hoping to get it back in the long term though... in another 4 years or so

Not if you plan on running Mittens again or anyone with the same broke back nostalgic ideas....

 

[Shadow Wolf]

You can't blame Obama for people selling. There is already a thread going about this self-fulfilling prophecy.

 

[tytlyf]

No, I am a long term investor and do not try to second guess the market day to day.

If I wanted to gamble I would go to Vegas.

All I see are novice investors. I trade regularly and consistently pull 10-20+% a month.

 

[Meow Mix]

Rick, did you miss my thread about this phenomenon?

 

[Quagmire]

Precious metals are way up though.

 

[Reverend Rick]

I think it mostly has to do with the can kicking going on. You know the Super Committee dropped the ball and we only have till the end of the year before we have to deal with the consequences of us not having a budget. The politicians will be leaving Washington with work left undone, watch and see.

Boehmer is already asking to extend the time limit.

 

[Quagmire]

I think it mostly has to do with the can kicking going on.

Aluminum is up too.

 

[Dirty Penguin]

I think it mostly has to do with the can kicking going on. You know the Super Committee dropped the ball and we only have till the end of the year before we have to deal with the consequences of us not having a budget. The politicians will be leaving Washington with work left undone, watch and see.

Boehmer is already asking to extend the time limit.

Now I do agree here......either way the issues will still be there and they'll need to be dealt with.....