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Stock Market is Dropping Like a Rock - Presential Election Related?

Tonawanda said:
I have been investing, and in the stock market for many many years. Depending on your personal time threshold, your assets and investment strategy, it could be the time to buy, buy, buy. And it could be the right time to sell, sell sell, or it could be the time to do neither. Every individual has to make their own decisions. Since my mandatory withdrawals from a 401k start in 4 years and I am a 47 percenter with assets, I have been, and will continue to move out of the market. I believe the market is over hyped and the volatility of the last 12 years is too great (for me). I am not bullish on the stock market here or abroad, or the financial health of the US. And finally, in my opinion, even 4 more years of spending, spending, spending will be detrimental to the future of the US economy. And believe me; I hope I'm completely wrong about the future and financial health of the US.

Good luck on your buy, buy, buy investment strategy.

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https://www.google.com/finance?q=INDEXSP:.INX&ei=aXObUMDJJsSXqgGS1gE
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in all honesty, while you're correct overall, we'll have much bigger problems than who has more inked paper if the market crashes again so soon after it already tumbled and bankrupted 10's of millions. there will be a breakdown of our entire society, and with it, probably much of the world's society.
 
roflpublican said:
there will be a breakdown of our entire society, and with it, probably much of the world's society.
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I think that's overstated, but it sounds like we agree that a significant downturn would be very harmful.
 
Dwight said:
The bank stocks are getting hit much harder than that.

I know I shouldn’t underestimate people’s stupidity but…if you are managing a sizable stock portfolio I would expect you are good enough with numbers to have realized by yesterday morning that Obama was very likely to be elected. Thus I don’t expect Obama’s re-election is what is actually driving this. Rather I think it is Boehner’s reaction, and thus the anxiety around the likelihood of crap getting sorted out (or not) and deal getting done (or not) by the end of the year that is driving this.
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The stock market decrease had more to do with European issues than with the continued presidency of Obama.
 
Tonawanda said:
And finally, in my opinion, even 4 more years of spending, spending, spending will be detrimental to the future of the US economy. And believe me; I hope I'm completely wrong about the future and financial health of the US.
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Did you know that the "spending, spending, spending" of the US government is largely spent on goods and services within the US economy. Governmental spending actually increases GDP, and increases the health of US businesses. It's when business begins to believe that the government can no longer spend that things start to look bad.
 
I'm sorry (no I'm not) but until we get a Monarchy, the results of an election has little sway on the stock market. Sure there was some betting going on - and Wall Street ain't stupid. They bet on both but their prime candidate lost.
 
JRog said:
Did you know that the "spending, spending, spending" of the US government is largely spent on goods and services within the US economy. Governmental spending actually increases GDP, and increases the health of US businesses. It's when business begins to believe that the government can no longer spend that things start to look bad.
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Yes of course, the products and services as well as the pay government workers receive are put back in the economy. I meant the excesive spending that results in increases in the National debt. When they pay interest on the debt to US citizens, that money should also eventually go back into GDP. It's the overall increasing size of the debt that dampens business and consumer sentiment. It's all about the economy.
 
The Dow was Up 135 points Tuesday fully cognizant of the likelihood of an Obama victory.
Then lost 312 Wednesday.
There are oft Big Gyrations after election day. CNBC did a short segment on it yesterday.

The DJIA closed at 8695 on Nov 6, 2008
Last night around 12,933.
app a 50% Gain under Obama. (/Pres-elect Obama)

That said, there was some shifting going on from Dividend stocks (Dow type) to [Tax Free] Municipal Bond funds because taxes on Divs will likely go up.
The GOP might agree to divs being taxed at a higher rate which was always on the table.
Surprised some woke up to it just after the election. Big Banks also got hit hard; perhaps Europe.
Any plan from either party that cuts the deficit has to either increase revs And/or cut spending. Austerity/any 'Fiscal Cliff' solution hurts stocks in the short run, as does doing nothing.
 
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