Dow Plunges

theiioftx

theiioftx

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The Dow plunges and Obama faces a fiscal cliff. Gee, I wonder why? 52% of Americans say we are headed in the wrong direction, then give him four more years so they can continue their welfare checks, free phones and general laziness.

I think we have reached more than a fiscal cliff, we have reached a stupidity cliff that we may never recover from.
 
calling our Representatives in the House "Terrorists" isn't treating anyone with respect.

Sorry, can't take your reply seriously.
 
Do you ever stop and think , "Gee, maybe I won't be a total ******* hypocrite today . . " ?

Stock market soars -- has nothing to do with Obama

Stock market plunges -- has everything to do with Obama

Come on, man. Give it a break.
 
Before you assume political opponents are acting only out of blind stupidity, I think you should examine some alternative explanations. Wall Street for sure doesn't like uncertainty and with the mix we have in Washington it's hard to imagine an intelligent compromise. Maybe "terrorist" is too strong a word, but when you have a pilot who would rather fly into the side of the mountain than make an adjustment to his flgiht plan...
 
Chango, while the president doesn't have a direct effect on the stock market the market reacts to policy and elections, thus for you to say that you don't think the market today has anything to do with the election is a little naive. Now whatever it loses today it will gain back relatively quickly as the reactionary moves aren't normally long term but it definitely is a reaction to the election unless something else happened after the close of the market yesterday or this morning that I'm not thinking about.
 
Chango,

Send me your contact info so I can apply at your company. You do own a company or at least run a business?

I did openly state I am bitter. I have worked hard, taken many risks and missed much time away from my family to reach this point.

I am told, "I did not build this" and our president plans to take from me to give it to those who did not sacrifice. Hey, if I am a lazy person, I would vote for democrats as well.

Please give me a plausible explanation of why the market plunged today. Anything to do with the fiscal cliff that is fast approaching?
 
Dow plunges? That's all you got?

It was 7949 when Obama took office and is at over 13,000 today. The earlier poster was right. If you are going to blame BHO for a fall of 300 points, you should give him credit for a rise of over 5000 points overall.
 
And taking Murphys logic even farther, The Dow closed at an all time high of 14,093 in the middle of 2007 under the watch of George W. Bush. We should give him credit!

Anyway, Warren Buffet was correct in saying that markets over the short term are voting machines and over the long term they are adding machines. They may gyrate regarding day to day events but longer term returns usually have very little to do with any one president.
 
I personally believe markets react to environment and events these days, more than they do to Presidents or actual economic conditions like whether or not the company's financials are strong. The Dow was higher under Bush.

If you worshipers ever take your blinders off, maybe you will read the premise of the posts. The market reacted negatively to an event and we have a President who has shown no ability of running economic policy other than running up his Beijing credit card and turning on the printing presses.

So, either read and think for yourself, or ask the moderators to enact a government button for you to push so they can read it for you.

People with capital are seeking havens for their money, not seeking ways to invest in companies. If you do not have money or have never run a business, you will never understand. The fiscal and idiot cliff will be a long hard fall.
 
Market's react to news in the short-term however eventually there is a regression to intrinsic value. Most folks expected a short-term sell-off if the Obama was reelected. Anyone thinking that this sell-off is not related to Obama's relection is either delusional or simply not informed.
 
Probably not informed. However, the market will bounce back in a few days. The one thing I am curious about is the automatic cuts. With gridlock a certainty, it makes automatic cuts more likely. In the long run, it will be good for the country. In the short run, it will hurt politicians currently in office and will hurt the economy.

As for the above poster, I understand your anger. I had an assistant tell me that she was going to buy $100 in food stamps for $50. She does fine, works extra hours, buys lots of nice clothes, goes on vacations, goes bar hopping every weekend, etc She told me that that is how the system works and that the economy sucks so it is what is needed to get by. I ignored the comment at the time, Then I hear about people hurting (above poster), and the idea of others milking the system as our economy crumbles just pisses me off.
 
As the cranium is a bone, I tend not to think with it but to each his own. By the way, your highly intelligent link doesn't work. You got one too many https in there.
 
An increase on capital gains and dividends is coming most assuredly now after the election either automatically or as part of some compromise. That just made a lot of stock less valuable and attractive to keep money in. I made that choice months ago but many apparently didn't and that pushed the market down.
 
It was freakin' Germany and Europe, guys. The EU came out and said that growth next year would not be 1%, but .1%. And Greece has the markets a little on edge, too. The price of oil also tumbled today: 4.8% on the New York Merc. All because of anticipated reduced demand in Europe.
 
Che,

One small rejoinder is that intrinsic value as I calculate it is effected by tax policy, perceptions of future growth, free cash flow yield in the future, etc. In general the Obama admin favors higher tax rates, increased regulation, and policies that favor social welfare over corporate productivity.

I can see how someones perspective gets changed by his sitting in the White House four more years.

Anyway, The Eurozone being sick and Obama getting re-elected were not exactly huge surprises to anyone. I wonder if the very high probability of capital gains taxes going up next year is fueling a sell-off. That is what David Rosenberg was saying this morning.
 
So doesn't Obama seek to follow European and other world country policy? Yes, we will follow, not lead, world policy in my opinion.

Taxes will increase for most everyone in Texas who itemize. You will no longer get a sales tax deduction with the new tax policy changes and expect other deductions to change. Increases to capital gains will stifle investment not only in the stock market, but in private business.
 
You don't follow the markets very often then That is strangely a perfectly plausible scenario that I have seen play out in different shapes and forms for many years now.

Barclays Strategist
 
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