Why the stock market is going down the toilet today? The DOW, NASDAQ and the S&P are down by around 2.5%. Is this normal after an election? I thought it was always rosy in November and December after an election? This is insane.
Europe, fiscal cliff worrywarting is the conventional explanation. So big money boys are buying T-bills and selling equities.
The deepening European recession, fiscal cliff, tax increases, health insurance companies dropping (Humana down 10%, UHC down 5%, Aetna down 4%, Blue Cross (wellpoint) down 6%, Cigna down 2%...
The market goes up on expectation and down on realization. I'm sure a lot of recent buyers were hanging on to hopes Romney would make the rich richer. Maybe people are taking capital gains before Obama can raise the rate.
Europe. The markets were up overnight, indicated it wasn't related to the election. The collapse started when Mario Draghi made some comments regarding a vote taking place in Greece tonight that will determine the future of their bailout.
Markets will also likely be very volatile for the next 2 months during the fiscal cliff negotiations, because you can be sure that both parties will take this down to the wire and cause all sorts of unnecessary panic.
Both parties? This whole thing is the product of one party being outrageously and ridiculously intransigent in pulling a lame-ass stunt with the debt ceiling. And one which will deploy tricks like the filibuster to get its way without regard for the underlying rationallity/harm. So yeah, both parties will take it down to the wire, because one party has behaved completely irresponsibly and is willing to hold the economy hostage.
Are you kidding me? Where? Thanks for those with serious replies and not tarding it up like that post.
I suppose you can argue that people are selling now to avoid capital gains tax increases later (which have been in the books for 2 years...) but i'm skeptical that it's really people churning their personal accounts enoguh to move the market that much, no? HOnestly I think you should just tax cap gains and ordinary income the same. You can reduce rates slightly to minimize the hit. Then you don't create silly incentives to shift around into this or that.
Regulation and fiscal uncertainty. reexamination of the cap gains tax rate Markets are short term. Investors thnk romneys changes would be softer for biz.
That wouldn't explain why futures were higher overnight and the market immediately started coming down when the ECB comments happened. Or why the market stabilized and immediately rebounded the very minute that Europe closed.
From GLOBAL ECONOMY 11:44am Athens braced for crunch austerity vote Measures must be approved in return for debt relief Mass resignations hit Bank of Greece Greek politician’s stance threatens vote Fearing Cuts, 45 Bank of Greece Execs Quit Violent protests in Greece against austerity vote Crude Futures Drop on Greek Austerity Vote, Rising U.S. Supply
Don't forget dividends too. High yielding div stocks got nailed pretty good. They will drop in price due to their effective after tax yield dropping. Anyhow, the market is spastic and does stupid things all the time. It gave me some decent trading opportunities today. People were buying the market into the election hoping for a Romney victory. That didn't happen. I think there is a strong chance we are back to where we were on Monday in the market by the end of the week or even today.
