Perhaps the past 2 days, not just the day after the election, will help convince some skeptics that the election of Barack Obama is the single biggest factor in the stock market's history-making 2-day decline.
In the 2 days since the election, the market has experienced its worst 2-day decline in U.S. history.
Prior to the election, the market was making a decent recovery. In fact, it was inching upward toward the 10,000 mark once again.
But as I predicted (along with several others), electing Barack Obama to the White House would send the market into an immediate tailspin due to his investor-hostile policy positions.
It is the height of naivete to think that the election of someone who will slap investors with heavy taxes would not negatively impact the market in a major way.
Investors are not imbeciles. They watch tax policy very closely. And they correctly determined that in order to avoid losses in 2009 resulting from the hefty tax increases of the Democrats and Obama, they need to sell now.
Thus, the stunning 2-day plunge.
And unless the Democrats and Barack Obama signal that they will NOT implement the promised tax policies that will penalize those who create wealth and invest in our markets, we can expect more dramatic and painful losses.
We are headed for another Great Depression unless the new 'chosen leaders' back off from their ill-conceived intention to increase taxes on the very ones who can pull us out of the current economic downturn.
Friday, November 07, 2008
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1 comment:
It's a technical thing. Bases need to be established and tested. The bounce off the bottom was just too tidy. Yes, Obama, Pelosi and Dodd coming out and making statements doesn't help, and they need to shut the f*** up, but the market plays by its own rules. Remember The Hitchhiker's Guide: "Don't Panic" Those with cast iron intestines will make some money off of this plunge.
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