Author Topic: Stocks plunge after election, biggest drop all year. (Read 561 times)

powderman · « **on:** November 07, 2012, 02:37:14 PM »

Stocks plunge after election; Europe woes deepen by Associated Press WHAS11.com Posted on November 7, 2012 at 4:24 PM Stocks are closing with their worst one-day loss of the year as investors look past the election and focus on big problems ahead in Washington and in Europe.

The Dow Jones industrial average plunged 313 points to end at 12,933 Wednesday, its worst day of 2012.

The Standard & Poor's 500 index fell 34 points to 1,395 and the Nasdaq composite index gave up 75 points to 2,937.

American voters returned a divided government to power and left investors worrying about tax increases and spending cuts that could stall the economy unless Congress acts. In Europe, leaders warned that unemployment could remain high for years.

The losses were broad. Falling stocks overwhelmed rising ones five-to-one on the New York Stock Exchange. Volume was heavier than usual at 4.3 billion shares.

Conan The Librarian · « **Reply #1 on:** November 07, 2012, 04:13:17 PM »

All it has to do is drop another four thousand points and it will be comfortably in its old range from during the GW Bush days.

mirage1988 · « **Reply #2 on:** November 07, 2012, 09:34:08 PM »

Quote from: Conan The Librarian on November 07, 2012, 04:13:17 PM

All it has to do is drop another four thousand points and it will be comfortably in its old range from during the GW Bush days.

George Bush didn't have the federal reserve dumping 40 BILLION DOLLARS PER MONTH into the stock market to make it look like the economy was improving to get re-elected! From the donkeys mouth-

http://www.businessweek.com/news/2012-11-07/fed-qe3-may-top-1-trillion-amid-political-impasse

Brett · « **Reply #3 on:** November 08, 2012, 04:21:23 AM »

Hang on tight... it's only going to get worse.

Conan The Librarian · « **Reply #4 on:** November 08, 2012, 04:39:25 AM »

Mirage1988,

The way I read the article is that the 40 billion per month is going into the mortgages not the stock market. Did I miss something? But about the mortgages, this is what got us into deep trouble to begin with, and I cannot understand why they are trying to reinflate the housing market bubble. The housing market needs to settle so that valuations are at market rates, not at some artifically influenced rate that creates perverse incentives.

ironglow · « **Reply #5 on:** November 08, 2012, 04:50:24 AM »

Nobody helped with any of my mortgages.. Of course, I never bought beyond my means..

lakota · « **Reply #6 on:** November 08, 2012, 04:50:50 AM »

FORWARD!

Sent from my VM670 using Tapatalk

ironglow · « **Reply #7 on:** November 08, 2012, 05:01:29 AM »

As expected, had the election gone with Romney/Ryan, the stock market would have climbed..
Imagine; if you has a 401K account worth say, 200K on Tuesday..on Wednesday it may have been worth 180K..
On the other hand, had the Romney team been elected, it may have been worth 220K... ... a 40K swing..

Defoe · « **Reply #8 on:** November 08, 2012, 05:08:37 AM »

Quote from: ironglow on November 08, 2012, 05:01:29 AM

As expected, had the election gone with Romney/Ryan, the stock market would have climbed..
Imagine; if you has a 401K account worth say, 200K on Tuesday..on Wednesday it may have been worth 180K..
On the other hand, had the Romney team been elected, it may have been worth 220K... ... a 40K swing..

my wife has a friend whos husband is about to be layed off. his boss said because of obama care, two people have to go.
this is the future of small business.

Conan The Librarian · « **Reply #9 on:** November 08, 2012, 05:29:31 AM »

I think it's the present of small business. This sort of thing has been accellerating since 2009 and it's really troubling.

mirage1988 · « **Reply #10 on:** November 08, 2012, 05:52:52 AM »

Conan-
Here is wiki's explanation of "quantitative easing" or in other words "obamas job bailout"-
The next depression is gonna be bad when the presses run out of ink......

http://en.wikipedia.org/wiki/Quantitative_easing

ironglow · « **Reply #11 on:** November 08, 2012, 06:30:44 AM »

OH and don't forget..if you have any savings, they will take a big hit too...just as soon as Obama fire up the printing presses..

Conan The Librarian · « **Reply #12 on:** November 08, 2012, 06:53:12 AM »

Check the news today. There are several stories. Drudgereport.com has a couple.

Defoe · « **Reply #13 on:** November 08, 2012, 10:31:38 AM »

Quote from: ironglow on November 08, 2012, 04:50:24 AM

Nobody helped with any of my mortgages.. Of course, I never bought beyond my means..

What a concept, living within your means. I tried that once, and it worked.

Buckskin · « **Reply #14 on:** November 09, 2012, 01:49:33 AM »

Not that it's a big suprise to very many people. I saw this coming and put all of my IRA and 401k in cash on monday. First time I have ever done anything that drastic, but it seemed a no brainer at the time. Don't know when I will head back in, but as someone said, the dollar will lose value too...

Defoe · « **Reply #15 on:** November 09, 2012, 02:14:42 AM »

People are selling stock to have cash, precious metals and guns..

Old Fart · « **Reply #16 on:** November 09, 2012, 03:56:01 AM »

I always joke invest in lead. Maybe it isn't such a joke today.

jhm · « **Reply #17 on:** November 09, 2012, 05:51:13 AM »

Sounds like several people waited a little to long before moving their investments, I dont like loosing money either but it was too tight a election to ,wait and see. Jim

lakota · « **Reply #18 on:** November 09, 2012, 11:16:34 AM »

Quote from: TM7 on November 09, 2012, 05:01:34 AM

3. End all financial aid to Israel.
....
.
.
...TM7

Why do you specify Israel only? Why not end ALL foreign aid? If ending Israel's welfare check would help the economy a little imagine what ending all of the welfare checks to the rest of world would do.

Defoe · « **Reply #19 on:** November 09, 2012, 11:23:57 AM »

Quote from: jhm on November 09, 2012, 05:51:13 AM

Sounds like several people waited a little to long before moving their investments, I dont like loosing money either but it was too tight a election to ,wait and see. Jim

when gas was de-regulated I sold all my utilities, and in 2010 I sold everything else. even cashed all my bonds.
lead and other precious metals is my investment now.

Conan The Librarian · « **Reply #20 on:** November 09, 2012, 11:28:40 AM »

Lakota:

It's more insidious than that. There is actually foreign aid to Egypt also, and this has created what amounts to an arms race that ends up costing Isreal more than if there were no US aid to both Egypt and Israel.

The aid to Israel has a lot of strings attached, like they have to buy certain US products. Net result is that, without aid to both Egypt and Israel, Israel would effectively get an increase in revenue because their key adversary will have less money to buy arms with, and therefore have less to compete with, and Israel would not be constrained in its purchases and spending, so they could buy things that are as good or better from other countries.

The position of the Israeli government, as I understand it, is that they don't want the aid either as long as Egypt doesn't get aid.