Quote:
Originally Posted by tttalinky
Not to start a political bashing on our re-elected president,......but is the 434 point drop in the two days following the Presidential Election a short term or long term event?
My 401K is screaming out to me! 
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In my opinion, one should not read much into this, since big traders and high-frequency platforms move markets so sharply nowadays.
One thing to note is that it's very likely this move had little to do with the election results, for a couple of reasons:
1) The election's outcome was hardly a surprise. Most of the financial world expected Obama to win re-election.
2) Some analysts expected a small selloff in the event of a Romney win, since he was seen as likely to be considerably less friendly to continuing QE by the Fed.
My sense of this is that some traders reacted to a flurry of stories connected with how the political process would grapple with addressing issues related to the "fiscal cliff." (But note that the same issues would exist no matter who won the election -- it's just that when it's over, attention tends to settle on a new set of concerns. And some of these people don't have the attention span of a fruit fly!))
(However, I haven't been following events as closely as usual the last couple of days, since I still have an anesthesia-induced hangover from the surgery I had yesterday at 7 am!)
Also, please remember this old aphorism: The market believes that its main purpose is to make fools of the maximum number of people possible!
Dow Jones down -434 in two days
