Dow Jones down -434 in two days

Not to start a political bashing on our re-elected president,......but is the 434 point drop in the two days following the Presidential Election a short term or long term event?
My 401K is screaming out to me!

Short term. There will be some initiaL knee jerk reactions to the election, but as things settle in, businesses will rebound and get back to, well, business.

Obama Care is still a big "if", it's amazing how many people, including business owners, who do not know that much about how it will affect them. One thing is certain, it's here to stay.

The news today was featuring several business owners who say that they are already getting ready to lay people off because with The Presidents re-election because only a change in the Executive would have given the repeal of Obama Care a chance.

Many will find a certain satisfaction in that those who get laid off because of health care cost will probably be people who voted for President Obama.

Short term. There will be some initiaL knee jerk reactions to the election, but as things settle in, businesses will rebound and get back to, well, business. Originally Posted by Jackie S

+1

Excellent analysis!

Once people spit out the bile and check this out, they'll realize they're in pretty good shape.

Well put Jackie.

Short term. There will be some initiaL knee jerk reactions to the election, but as things settle in, businesses will rebound and get back to, well, business.

. Originally Posted by Jackie S

+1
Thanks for the calm view, Jackie S

JD thinks you need to sell off everything and buy a farm and gold and a gun and plenty of ammo.

He seems to be the Tea Party's Financial advisor

"Many will find a certain satisfaction in that those who get laid off because of health care cost will probably be people who voted for President Obama". Jackie S

YUP

Not to start a political bashing on our re-elected president,......but is the 434 point drop in the two days following the Presidential Election a short term or long term event?
My 401K is screaming out to me! Originally Posted by tttalinky

In my opinion, one should not read much into this, since big traders and high-frequency platforms move markets so sharply nowadays.

One thing to note is that it's very likely this move had little to do with the election results, for a couple of reasons:

1) The election's outcome was hardly a surprise. Most of the financial world expected Obama to win re-election.

2) Some analysts expected a small selloff in the event of a Romney win, since he was seen as likely to be considerably less friendly to continuing QE by the Fed.

My sense of this is that some traders reacted to a flurry of stories connected with how the political process would grapple with addressing issues related to the "fiscal cliff." (But note that the same issues would exist no matter who won the election -- it's just that when it's over, attention tends to settle on a new set of concerns. And some of these people don't have the attention span of a fruit fly!))

(However, I haven't been following events as closely as usual the last couple of days, since I still have an anesthesia-induced hangover from the surgery I had yesterday at 7 am!)

Also, please remember this old aphorism: The market believes that its main purpose is to make fools of the maximum number of people possible!

In my opinion, one should not read much into this, since big traders and high-frequency platforms move markets so sharply nowadays.

One thing to note is that it's very likely that this move had little to do with the election results, for a couple of reasons.

1) The election's outcome was hardly a surprise. Most of the financial world expected Obama to win re-election.

2) Some analysts expected a small selloff in the event of a Romney win, since he was seen as likely to be considerably less friendly to continuing QE by the Fed.

My sense of this is that some traders reacted to a flurry of stories connected with how the political process would grapple with addressing issues relating to the "fiscal cliff."
! Originally Posted by CaptainMidnight

+1
Well said CaptainMidnight

.

Europe is in shit city and has more to do than the election,but the wingers will always blame the pres...