Largest Post Election Stock Market Sell Off in History

@ Real American Patriot

Nice try.

The people involved in the stock market are gamblers by nature, intelligent gamblers. And what pray tell, SoCal, reflected “hopes of a McCain presidency” last week? The polls? I think not. The pipe dream of the Bradley Effect? Only if you were looking for an excuse to ignore the polls. The stock market had already factored in the likelihood of an Obama presidency before Nov 4.

Nice try, Mike. Whatever gives you a warm fuzzy.

IT’S GETTING UP THERE WITH 9/11 (15% DROP THEN), WHICH WAS NOTHING COMPARED TO THE MESS WE ARE IN NOW.

(the attack was nothing compared to what 4 years of Obama will do to us, not the15% drop relative to the 10%, obviously)

Well, knowing that Congress is looking to get their greedy hands on our 401k’s and IRA’s my plan was to sell off and sideline 98% of my retirement funds until I could find an appropriate place to stash it where the next Administration couldn’t get its hands on it.

I accomplished half of that before the market dropped so badly that it made no sense to sell what was there and had I been really paying attention, I should have known that the markets anticipated the McCain election, not the other guys. Then at least I could have sold at half loss vs. 3/4 loss LOL!

Oh well….that’s what I get for doing my own and not trusting a broker! Seriously though, every time McCain went ahead in the polls the market perked up. Every time it looked like the other one was picking up more steam, the markets went blah. Check the trends for yourselves ladies and gentlemen.

I blame barack.

We are nearing another financial meltdown.

Great..how many billions will it cost the taxpayers this time??

Larry.

Credible analyst? Are you trying to be humorous?

An Obama win was a strong sell signal, right or wrong this was the consensus of every fellow professional trader I know.

However, this little drop is just that, a drop in the bucket, our suspicions won’t be confirmed until the low of Oct. 10 is penetrated, the Oct. 27 low you cite is largely meaningless.

It may not happen immediately, but the Obama win will most surely plunge the economy into a brutal recession, if not an outright depression.

I see Sky55110/CRAP is still living off the LSD from his youth…

who is in the white house still??? who’s administration is responsible?? that would be BUSH!!

do you think it might have something to do with last months retail sales sliding so bad?? that would be from buying that happened BEFORE the election!!!

In a word, no. The market works on future. A bad report for employments numbers is anticipated, as well as GM going down.

The same president was in when the market has done his attempted rallies post AIG/Fannie/Freddie/bailout. We’ve had bad employment numbers and quarterly reports before.

It did not fall this much for any of those events. The only event added to the mix is the market anticipate to a President Obama’s projected future for business.

Get a grib yourself.

@Mike’s America:

I think dat was a typo.

Larry, perhaps MSNBC isn’t positing it that way. There was no news coming down the pipeline that was not expected. GM and Toyota revised figures down.

Retailers warned it may be a lean season, but the sales figures for many belied that (overly alarmist, you might say). In fact, Walmart was predicting a “blockbuster holiday season”… and likely it’s last as it’s anticipated that Obama/Pelosi/Reid will push thru the Employee Free Choice Act… pressuring workers into the union by pulling their secret ballot options.

Unemployment figures were already anticipated at a 200,000 drop. Job losses in everything from commodities to even more cuts in the investment banking sector (the bulk of those 700K job losses since the beginning of the year, BTW) was also anticipated.

In short, there is nothing in the financial news that was a surprise. They expected no good news. Rather difficult to think of a two day massive sell out in the immediate 48 hours following a presidential election is “unrelated”, since the markets have been taking the above mentioned factors in stride all along.

So we go to the other entry… the certainty of an Obama presidency. Some find that Obama has failed to “inspire” confidence as to what he can, or is experience enough to do.

Stocks Plunge as Investors Ponder an Obama Presidency, from Real Clear Markets on Nov 5th… before today’s tumble

A case of postelection nerves sent Wall Street plunging Wednesday as investors absorbed a stream of bad economic news and wondered how a Barack Obama presidency will help the country weather a possibly severe recession. Volatility returned to the market, with the Dow Jones industrials falling nearly 500 points and all the major indexes tumbling more than 5 percent.

~~~

Although the market expected Obama to win the election, as the session wore on investors were clearly worrying about the weakness of the economy and pondered what the Obama administration might do to help it. Analysts said the market is already anxious about who Obama selects as the next Treasury Secretary, as well as who he picks for other Cabinet positions.

“The celebration is over. Today we saw a bit of reality,” said Al Goldman, chief market strategist at Wachovia Securities in St. Louis. “President-elect Obama is coming into a situation with limited experience, having to handle an economy in serious trouble, a couple of wars and terrorism. It’s an extremely tough job.”

~~~

Analysts agree that Obama’s most immediate priority will be dealing with the nation’s financial crisis and deciding how to further implement the $700 billion rescue package passed by Congress last month.

Goldman said trading could remain turbulent as investors begin assessing the shape and direction of Obama’s forthcoming economic policies.

“The market has to go through a period of figuring out if they are going to gain confidence in Obama and the Congress or lose it,” he said, adding that investors will be paying close attention to who will be appointed to top economic posts.

Obama’s victory means that industries such as oil and gas producers, utilities and pharmaceuticals may face greater regulation and even taxes, while labor unions and automakers are expected to benefit.

In addition, banks, insurance companies, hedge funds and the rest of the financial sector will almost certainly face attempts at a regulatory overhaul by the Democratic Congress next year

Need another who thinks Obama is related? from The Street

It was clear that broader oversight of the financial industry was on the horizon, even before the winner of Tuesday’s U.S. presidential election was known.

But after Democrat Barack Obama’s landslide victory over Arizona Republican John McCain, the Illinois senator’s plan to streamline the financial regulatory system and tighten the reigns of control will soon begin to take shape. And now that his party has gained stronger majorities in both houses of Congress, there won’t be much standing in his way.

“There’s likely to be greater regulation,” says Richard Clemens, a fellow at the Center on Federal Financial Institutions, a nonpartisan public policy institute. “And that could have happened regardless of who won the election, but I think because Obama won and because the Democratic majority were strengthened, it’s likely to be more regulation than if the Republicans had won.”

Still, Clemens, who represented financial firms in regulatory cases as a senior partner at Sidley Austin, is quick to note he does not “think it will go to extremes.”

Obama seems to be planning what he often refers to as a “common-sense” approach to modernizing the regulatory system and cracking down on agents of malfeasance that fueled the current crisis. Some elements of his plan are sure to give pause to industry insiders who fear that Obama and his Democratic colleagues will pull the regulatory reigns in too tight. Those include compensation caps, less favorable tax laws for corporations and the wealthy, and greater scrutiny of practices and assets that had largely been unregulated.

~~~

None of Obama’s ideas are shocking or particularly unique. Treasury Secretary Henry Paulson in March proposed many similar reforms shortly after Obama’s speech. But some are worried that after decades of lax oversight, regulators under a Democratic government will go overboard. The crisis for banks was preceded by the start of the housing bubble’s decline, and as Obama noted in March, “What was bad for Main Street turned out to be bad for Wall Street. Pain trickled up.”

What’s interesting is that those quoted in The Street’s story think like you. They don’t believe Obama will be too extreme. But then, do the buyers pulling out believe the same? Because it is not only trusting Obama, but trusting Pelosi/Reid and the tendency of the DNC to overreach historically.

BTW, also interesting in this story is that they said the market was not under regulated, as there were four layers of regulatory agencies they had to go thru. Rather like our non-communicative intel problems of the 90s, these agencies are not interacting nor efficient.

So is the cure of an Obama/Pelosi/Reid to merely add a fifth regulatory agency that does nothing more than muddy the waters?

One thing is for sure. THe western media not still fawning over Obama and reporting the news definitely believe there is an Obama effect… or not, depending on how you want to look at it. And even if these spokespersons trust Obama not to be extreme, you have to wonder if those in the profit taking stage feel the same way.

But it ain’t just “news as usual”…

who is in the white house still??? who’s administration is responsible?? that would be BUSH!!

Don’t you think, wise leftist, that his election would lead to a RISE in the stock market?

Richard concisely said:

Don’t you think, wise leftist, that his election would lead to a RISE in the stock market?

Yeah… a shorter version, without the financial pros input for Larry, in my post #20. That’s for the no-nonsense, let’s get to it summary, Richard.

Hey, five minutes in “mob-talk conditions” is a lot for me, guy… besides, I got a phone call from a friend who wanted to “chat” ol’ fashioned style. By the time I got back, the party was over! :0)

BTW, in relations to money, economy, and the American citizen that doesn’t make up Obama’s districts… you really must read Michael’s post on he old thread, the Obama Tax Plan.

This is a “joe the plumber” reality moment for the Obama supporters. I’m quite sure they all think the world is made up of urbanites, whining that they can’t pay their mortgages because of their overage on their cell phone bill that month.

@MataHarley:

I really wish that you had stuck around a little longer.

Mike pranced around for us in his lavender FA thong, but it just wasn’t the same without you there.

I thought we weren’t supposed to tell about Mike’s thong LOL!!! And I agree with Aye, wish you would have hung out with us for a while longer Mata.

At some point in time, these Obamabots are going to have to get a new pair of shoes. At what point will they realize that the Presidency does NOT have the power, that sits in the CONGRESS and the SENATE, which has been Democratic controlled for over two years now. And they’ve made a fine mess of the economy (see Barney Frank, Fannie Mae, AIG spa vacations etc.) and everything else they’ve touched.

Apparently though, the American people will have to suffer a lot longer before it dawns on them that bi-partisanship is another name for bankruptcy and lack of common sense.

OMG! I’m not sure what’s better… “being there”, or the post-chat imagination video! LOL

I’ll give the chat rooms another try next time. But as I explained to Mike off-FA forum, it’s like carrying on a conversation with 20 people at once. Never been much good at that as I’m actually somewhat a wall flower.

But Mike in the FA thong? Who could miss that one…. :0)

OMG! The leftists are hopeless. Hey guys, get some education on economy and politic. You have no clue how it works.
CHARLIE ROSE - ECONOMIST MILTON FRIEDMAN
http://video.google.com/videoplay?docid=-2963837673813979186

@Scrapiron:

My goodness man, you are so full of hatred. It must be difficult to go through life that way!

“My goodness man, you are so full of hatred. It must be difficult to go through life that way!” (DJ to Scrapiron))

Maybe you should read this quotation:

“I would remind you that extremism in the defense of liberty is no vice! And let me remind you also that moderation in the pursuit of justice is no virtue!”
Barry Goldwater

@ Real American Patriot:

Bear in mind — the Clinton Recession began, of course, in November-December of 2000. Liberals, seeking to pin this recession on Bush, attempted to spin that inconvenient date by stating the markets were looking forward to Bush’s miserable failure economic policies.

Well, the current markets are looking forward to bad economic times compounded by all the wrong economic manueverings.

@Dave Noble:

I think I love this site. I just stumbled upon it and most of the comments are right on. The few that aren’t are, as usual from lefties that mumble the party line and cannot think and reason for themselves.
If they could only listen objectively to both sides, common sense and FACTS could bring them to just one conclusion. The Dems are responsible for this meltdown. The congressional record shows Mc Cain tried to warn us but Obama, Franks, and a host of other Dems shouted him down.
For at least the next 4 years they will blame Bush and suckers (Born every minute) will believe them.
All I can say about this election and the future of this country is “Atlas Shrugged”!!!!

To all American citizens: Neither the Republicans or Democrats are responsible for this meltdown, which was started off by the housing crisis. We brought that onto ourselves when we signed the paperwork and did not properly think for ourselves. No one forced any of the homebuyers to sign paperwork for houses that could not be afforded.

The government, no matter who is in charge, makes it own share of mistakes, and no one party is better than the other. We, as a people, must initiative on our own and read what our government is all about, how it works, et cetera. Being informed, or becoming informed, should not be and is not dependent upon our political affiliations. Our country, or any country for that matter, is only as good as its people.

Beowulf:

P.T BARNUM said “their is a sucker born every minute”

And then the get promptly signed up to the Democratic Party and ACORN registers them to vote.

The sell-offs will certainly continue. We watched as the Dow Jones was inversely proportional to Obama’s support in the polls. Now that he’s in, the jagged lines will continue venturing south as people try to get as much of their money out without incurring too much loss at a time. The investors are anticipating Obama’s capital gains tax increases and increased business taxes. Right now is a good time to be a foreign investor as they will not bear us much tax burden as our own investors. Ours are cutting their risks now while trying to avoid “disaster sales”. The stock market will stabilize again, but for the American investor, the taxes increases will make the risks all the more risky.

The question is, are there any good investments under an Obama economy? Under socialism even bonds issues would be more risky. With the increased unfunded Federal mandate drains on the States, there may be defaults on municipal bonds. Their is a lot of mistrust in banking institutions which makes even dumping your money into savings accounts risky. So what do they do, bury the money it their back yards and wait four years?

Dems Target Private Retirement Accounts
carolina Journal ^ | November 04, 2008 | Karen McMahan

RALEIGH — Democrats in the U.S. House have been conducting hearings on proposals to confiscate workers’ personal retirement accounts — including 401(k)s and IRAs — and convert them to accounts managed by the Social Security Administration.

Triggered by the financial crisis the past two months, the hearings reportedly were meant to stem losses incurred by many workers and retirees whose 401(k) and IRA balances have been shrinking rapidly.

The testimony of Teresa Ghilarducci, professor of economic policy analysis at the New School for Social Research in New York, in hearings Oct. 7 drew the most attention and criticism. Testifying for the House Committee on Education and Labor, Ghilarducci proposed that the government eliminate tax breaks for 401(k) and similar retirement accounts, such as IRAs, and confiscate workers’ retirement plan accounts and convert them to universal Guaranteed Retirement Accounts (GRAs) managed by the Social Security Administration.

(Excerpt) Read more at carolinajournal.com… …

“Buy on rumor, sell on news” is an old saying. With hindsight, it’s easy to ascribe which is which. My guess is that the rumor was the McCain hopefulness, and the news was the result.

Amelia,

I think I didn’t read your comment right. I think you were just being sarcastic, am I right? If so, sorry!

In electing Obama, the majority bought a pig in a poke. That means they couldn’t see if it was sick or crippled or even an elderly runt.

Obama ran an almost perfect wall of silence campaign. And his ’slip’ about redistributing the wealth may have been a way of saying, “Vote for me and I’ll send you a check.” Reaction to it was what made him limit the largesse to employed people until he gets elected.

He favored gun control until the large favorable reaction to the supreme court ruling. Then he looked so sad, hung his head, even scuffed his toe, and mumbled that he believed people have a right to own guns.

He constantly said he would fix this or that or everything but never hinted at how. It was all silent on the information front.

Soon, we will be getting our fill of details. But the media is already setting him up to be able to say, “The democrat legislature refused to be reigned in.”

So, how will we feel when we finally get a good look at our brand new pig?

For what it’s worth, my brokers are family and we’ve all divested like millions of others because it’s an Obama sell off. If we’re gonna have to hide our guns n ammo why the he** not our money?

Sure not giving it to Obama’s vision & lifelong dreams of a gigantic worldwide Kum Barack welfare state, that’s for dam* sure. We half got out when they passed that Obama Global Poverty UN bill in Feb, Senate Bill 2433, then anticipating his likely election, that socialist wet dream was enough for us. The rest came November 4th, 4:35 pm and thank the lord for that.