Stock Market Drops 400 Points After Election

Uncertainty has investors hedging their bets on Congressional gridlock

The markets watched the election on Tuesday, and they did not react too kindly. The Dow Jones Industrial Average dropped 400 points merely two days after the election.

The Hill reports there are a few theories on the sell-off, from investors expecting a Romney victory and easing tax regulations which may have accompanied it, to slow economic conditions in Europe and China, which may have caused the conditions for a large sell-off. The most likely theory: investors are spooked by the prospect of the fiscal cliff.

They're extra worried because the fiscal cliff is being addressed (or no addressed) by the exact same government responsible for the debt ceiling crisis in 2011.

The timing couldn't be worse, because the end of the year is important financially, and uncertainty about what the tax and fiscal policy will look like next year will likely affect holiday sales.

Even more worrying, The Hill reports, is the possibility that weaknesses in the economy could heighten the impact of the fiscal cliff, prompting leading economists to suggest the fiscal cliff could be worse than expected.

The Hill

What do you think triggered the stock market drop?

[CATTLEPROD]

Socialism has gripped amerika. It's about time, too, those greedy fat cats are just getting the last of their profits, but the games up, thank government!

[Stop_Whining]

Socialism???? With CEO's making larger profits than ever before??

Surely you meant fascism? Otherwise how could your statement be anything other than ridiculous....

[CATTLEPROD]

@Stop_Whining As far as I know fascism is when the state controls businesses, I wish barrack had that much power, this is just greedy fat cats taking their profits before taxes are raised, thank government, because all those profits will be less after that. Hopefully the stock market will have a crash it never recovers from, thereby forcing businesses to hand over profits directly to workers in form of pay raises and extra days off. Government will take those profits in form of taxes also and filter it down to the impoverished, and we will all be equal finally. Thats socialism, I wish it was communism, but I dont think it's facsism.

[Stop_Whining]

@CATTLEPROD

Taxation has been around since the formation of this country, if the fat cats do not approve, then they can use the door.

Its always open.

[kirbstomp1]

@Stop_Whining - yes fascist Amerika is here to stay

[MongoAPillager]

@Stop_Whining could have sworn taxes was the first round fired against england,income tax has only been around a short time.our taxes system is however based on a maxist concept

[Stop_Whining]

If these multi billionaires continue to abuse the system that has made them into gods of finance, they need be offered safe passage out of the US, and declared exiled.

The needs of the many, do INDEED outweigh the wants of the few.

Especially when that few constitutes one percent of the population.

[FFX_VA]

You clearly don't understand who's money is in the market. Labor unions, municipalities, company pension funds, the vast bulk of it is average people's savings and retirement savings. The 99%.

[Stop_Whining]

@FFX_VA

They cant move billions in an instant. Who can then...????

The ONE percent.

You clearly dont understand.

[Stop_Whining]

@FFX_VA

Its rather apparent that you do not understand the simple fact, that one TRILLION dollars is being hidden in overseas financial institutions. A crime punishable by federal law of course.

I wonder where the 99% shelter their trillions....

[FFX_VA]

@Stop_Whining LOL! Answer 1, Fidelity, TSP, among others can move that much money. Answer 2, those are the places we 53%'s who work for a living hide our money.

[Stop_Whining]

@FFX_VA

Would you like to bet that what your so called 53% "hide", is only a fraction, a taxed fraction, of what the 1 % store in the Cayman Islands alone?

[MRMacrum]

"What do you think triggered the stock market drop?"..........Stupid and paranoid people.

[MRMacrum]

@Stop_Whining - I almost think they are angrier at their own leadership than at Obama.

[Stop_Whining]

@MRMacrum They should be. A lying, flipflopping, billionaire cult master leaves much to be desired in the leader of the greatest nation on earth.

[FFX_VA]

No, those are the people who re elected Obama. The drop was pure financial risk management.

[Stop_Whining]

@FFX_VA

Calling the intelligent half of the country stupid, only proves my point.

There is always Canada lmao

[Laradian]

Exactly why is this a story? Stocks do what they've always done: Rise and fall.

[martydotcom]

Call PITA let's report Politix.com for beating a dead horsr

[martydotcom]

@martydotcom dead horse

[Politico36]

Lol lets blame Obama for a stock market bubble years in the making.

The stock market has deviated so far from its original purpose that its basically become the bitch mechanism of investors. For Christs sake even the weather can drop stocks.

The market will get over its little hissy fit and get back to screwing America over like it should.

No worries folks.

[Stop_Whining]

Its time to put these barons out on their collective fat ass, and see how many other democracies will let them get away with barefaced thievery.

[Buggsy888]

Politico,,,or we could blame him for nothing as usual. He is a God and nothing is his fault.

[Stop_Whining]

A God, when compared to the likes of Bush, yes.

[Jasonopolis]

Yes that is correct. It is still Bush's fault. It will still be Bush's fault in 2016 - that is unless the economy is doing great - in which case it will be because Obama is a master economists and savior of America!

[Buggsy888]

@Stop_Whining Not a Bush fan,,I am a fan however of the truth. And the truth is,,,Last two years of the Bush years,,,dems had the power,,as well as the first two years of Obama's. And yet,,,you hold them accountable for nothing..I rest my case.

[Stop_Whining]

@Buggsy888

If you brought that "case" to court, you would be told to sit down, firmly, by the judge.

Who I am sure, would immediately question your education.

[Stop_Whining]

@Jasonopolis

Bush began with a surplus. Ended with two wars, and a financial crisis.

Nough said.

[jessejaymes]

Wall street has made record profits the past 4 years in a row while main street suffered. It makes little difference anymore what wall street does in relation to the common man. Record profits, 12 million job losses. Screw em.

[DrMoonshine]

But but but but, we need to cut taxes on the rich so that there will be a trickling down effect for us poor folks!/sarcasm

[Jasonopolis]

Mostly based on uncertainty. The fear with Obama is that there is no real plan, nothing to base decisions on. It doesn't matter too much what he does - investors can find a way to make a profit in any industry, they just want to know what the plan is to allocate accordingly.

[vigilant]

What "uncertainty"? Considering the phenomenal surge in firearm related stock prices (due to the surge in guns & ammo purchases), people are prudently preparing for the almost most certain collapse.

[Jasonopolis]

So what are they going to do, shoot their way out of an economic collapse?

[Dan_Tien]

They were prudently preparing for the "almost certain collapse" before Obama took office 4 years ago, as well. My cousin was buying as much ammunition as he could "before Obama bans the sale of ammo". I knew a survivalist in Southern Oregon who died of old age before the "collapse of Western Civilization" he was expecting ever happened. Frank "Cranky Frankie" Rockwell died alone in his bunker, surrounded by canned goods, weapons, ammunition, gold mining supplies and John Birch Society literature. He was a nasty, bitter old cuss. Some people who made a profession out of welfare and sucking up to old people without kin ended up with his property. You get to live the life you make.

[vigilant]

@Jasonopolis Go back to sleep - nothing for you to be concerned about - you rascally Democrat, you.

[DARSB]

Just 400 points? Pikers. http://goo.gl/3Dtb5

[Sonny]

Its like I have said before----The market goes up---The market goes down---then the market goes up again...No big deal...Not worth trying to "read the tea leaves" on this one!

[Dan_Tien]

The Dow Jones Industrial Average was 1583.53 points lower on November 25, 2011 than it is today.

[Stop_Whining]

Exactly. Thank you.

[ST_Louie_Sue]

What triggered the drop? Are you guys THAT STUPID? Obama did. What I don't understand is why after all the years since this country was founded do you want to change it back to the reason people left Europe in the 1st place? Doesn't freedom mean anything to you?

[Zoe2012]

Obama!

[seedtick]

Hell, everyone knows that Barack Husssein Obama is going to do everything he can to screw businesses and successful taxpayers. Small bussinesses are in deep trouble because most of their owners fear the raising of their tax rates and added costs for Obamacare. Is anyone suprised that investors and businesses are nervous?
Their employees should be, also.

[David944]

Investment is a gamble; those rich fat cats could lose everything in an afternoon.

[rlstowe3]

Fear of the fiscal cliff and Obamacare. If capital gains tax rates are allowed to rise in January the market will drop to its 2009 level or lower. Investors will sell before the end of the year and take their capital gains at the lower 2012 rate.

[Zazziness]

The Republicans held this nation hostage last debt crisis and managed to hurt our entire country's credit rating. I'm not surprised the market fears they will pull that kind of stunt again but I'm actually hopefully they will not be so childish this time. They can only damage their own nation so many times before people won't put up with it any more.

[FollowTheMoney]

White collar meterosexual cowards investing to heavily in the legal industry. Smoke and mirrors isn't showing a profit just yet. But not to worry, congress will come out with a new product line soon.

[stepped_in_it]

Does ANYONE besides me think it might, just might be the back to back massive storms on the EAST COAST?? You do realize that the DOW does react also to events like hurricanes and major snow storms that shuts down how many people...30-50 million??

[David944]

It could be anything and the stock market will probably come back. But at this point the stock market may only be supported by quantitative easing artificially low interest rates. Someday the dollar will lose it value completely and that’s when it’s over.

[stepped_in_it]

@David944 Agree....and good comment....thanks!