Wednesday, November 5, 2008

Stocks Plunge on News of Obama Victory

The day after Barack Obama's historic electoral victory, investors responded by sending stocks plunging. The Dow closed down 496 points, more than 5.16%. The NASDAQ closed down more than 98 points or 5.53%.

The drop marks the largest post-election day decline in history.

With mainstream papers in the past so willing to credit post-election gains (See: NYTimes, LA Times) to Democrat victories, will they be as quick to blame Obama's win to today's historical decline? And what does this say about investors' confidence in Barack Obama's and the Democrats' abilities to solve our current economic crisis?

UPDATE: For the second straight day stocks continued their slide. The Dow closed down more than 440 points, or a little over 4%. The 2-day decline has erased 10% of the markets value.


HugoPhucoffGOP said...

Seriously are you drunk or delusional??

The 300 point increase on Election day was the largest election day gain ever! Wow, in a month where we have lost 4,000 points had NUMEROUS 500 - 700 pt. drops oyu want to attribute this to Obama? Even Cavuto wouldn't go there today!

BTW, here is a little nugget courtesy of a comment on Fox and Friends this morning...The Stock Market has performed 3 times better under Dem Presidents than under Repubs. And they were right!

James said...

Okay, let me make sure I get this down correctly. I wouldn't want to be wrong again.

If the market goes up after a Democrat electoral win, it's because investors believe the market will do better with Dems in power. If the market goes down after a Democrat electoral win it has absolutely nothing to do with Democrats.

Great, I think I got it now.

stantheinvestor said...

Since, Oct. 27 the dow has booked nothing but gains. Credit markets have loosened, housing values have started climbing again, home sales have increased in key states hit by foreclosers, the dollar is reaching decade highes, and gas is at a 4 year low.

Only after an Obama win did the market reverse course.

Cavuto won't go there because he supported Obama.

stantheinvestor said...

one last thing. The 8 days of gains from Oct 27 through yesterday's close represented the longest streak of gains since April 2007.

DKC said...

The market went down because Bush came out of hiding.

Anonymous said...

Anyone who thinks that investors are going to embrace Obama's tax increases, is smoking crack. Sure, there are other reasons the market is going down, but to say that not one investor is thinking 4-6 months ahead to Obama's punishments, you've got a mush growing in your head.

The Obama worshippers need to get off their high horses and deal with the reality of what their crazy-lipped messiah has done to this economy and what to expect.

You think it's bad now? Wait until Obama takes office and the Dems roll through these tax increases...