The Obama Dump

[Zippyjuan]

Politically nothing changed. Congress is the same. President the same. It was not unexpected that Obama would probably win. No- I don't think that was the main reason for the drop. The focus is now on Europe's issues and the Fiscal Cliff. Those are big uncertainties about the future and markets hate uncertainty.

[tangent4ronpaul]

http://247wallst.com/2012/11/07/boei...security-unit/

This sounds like less war the next 4 years.

That's a very good thing!

-t

[Brian4Liberty]

Politically nothing changed. Congress is the same. President the same. It was not unexpected that Obama would probably win. No- I don't think that was the main reason for the drop. The focus is now on Europe's issues and the Fiscal Cliff. Those are big uncertainties about the future and markets hate uncertainty.

Nothing has changed with regard to Europe. Your talking point is all over the left media today. Sorry, this was a reaction to Obama being elected, there is little doubt about that. Investors were mad, and some of them sold in protest. Purely political.

[Zippyjuan]

Interesting. Europe just downgraded their forcasts for the future- that led to the European exchanges losing 1.5% or more and the US market followed their lead. Even the so- far powerhouse Germany is being effected.

http://www.boston.com/news/world/eur...BCM/story.html

EU: Eurozone recession to be worse, rebound slower



BRUSSELS (AP) — Europe’s economy is still reeling and unemployment could remain high for years despite the progress made in solving the debt crisis, the European Union warned Wednesday, as it downgraded next year’s forecasts for the 27-country bloc.


The European Commission, the executive arm of the EU, on Wednesday revised down its forecast for the region’s gross domestic product, which it now expects to grow by just 0.4 percent in 2013, compared to its expectations this spring of 1.3 percent growth.


The commission had previously expected the 17 countries that use the euro to find its footing next year, with 1 percent growth. Now it predicts only a 0.1 percent uptick.


The report also suggests that unemployment won’t start falling until 2014 — and then only slightly.


‘‘Europe is going through a difficult process of macroeconomic rebalancing and adjustment, which will last for some time still,’’ Olli Rehn, the EU’s economic and monetary affairs commissioner, told reporters. ‘‘Market stress has been reduced but there is certainly no room for complacency.’’


The downbeat forecast helped erase an initial euphoria in markets over President Barack Obama’s re-election, with France’s CAC-40 stock index and the DAX in Germany both down 1.5 percent in afternoon trading Wednesday.

The commission’s report also confirms that the crisis is not sparing even Germany, Europe’s largest economy and the traditional motor for growth.


It predicted that Germany would eke out just 0.8 percent growth in 2012, compared with its earlier forecast of 1.7 percent. ECB President Mario Draghi warned Wednesday that ‘‘the latest data suggest that these developments are now starting to affect’’ the German economy.

[Brian4Liberty]

Interesting. Europe just downgraded their forcasts for the future- that led to the European exchanges losing 1.5% or more and the US market followed their lead. Even the so- far powerhouse Germany is being effected.

Yeah, right. And if the DOW jumped up 350 points today then CNN (and you) would be claiming it was the Obama bump.

There is bad news out of Europe on a daily basis. Nothing new there.

[Zippyjuan]

Also bear in mind that it was up over 130 points yesterday- with odds makers predicting an Obama victory. Retracing that takes out half of today's fall. It does not really matter what stocks do in one day (unless they majorly collapse) but what they do over time.

Stocks have done pretty well under Obama. When he took office on January 20, 2009 the DOW was just under 8,000 (granted this was after the economy had collapsed and was starting to improve). A 62% increase to date. If you want to credit what stocks do to Obama (which is giving him far more credit than he deserves- I would not credit him with that or today's numbers). The market was down that day as well (also over 300 points). http://daytradingstockblog.blogspot....ck-market.html

[Brian4Liberty]

Also bear in mind that it was up over 130 points yesterday- with odds makers predicting an Obama victory. Retracing that takes out half of today's fall. It does not really matter what stocks do in one day (unless they majorly collapse) but what they do over time.

Stocks have done pretty well under Obama. When he took office on January 20, 2009 the DOW was just under 8,000 (granted this was after the economy had collapsed and was starting to improve). A 62% increase to date. If you want to credit what stocks do to Obama (which is giving him far more credit than he deserves- I would not credit him with that or today's numbers). The market was down that day as well (also over 300 points). http://daytradingstockblog.blogspot....ck-market.html

Of course, much of the money creation is going into the major market indexes, artificially propping them up. Thank Bernanke and the Fed for that.

[Seraphim]

All stock markets are *slightly* in the red today. The general trend has been after large sell off days (yesterday) a large green day follows. It looks like stock markets are rolling over.

It is very, very telling that precious metals are holding steady and slightly up, while stocks are down a lot. It is inevitable (perhaps not imminent) that the two assets diverge, and it may be occuring now.