Wednesday, November 5, 2008

Stock market reaction to Obama election

Historically, is is not unusual for the stock market to slide after the election of a Democratic president. The fact that it was the biggest slump ever after an election has to be taken in the context of an extremely volatile market.

On the previous day, we also saw a record surge in the market for a presidential election day.

There was a bad report on jobs and service industries, but it's really hard to analyze what happened between these two days. Most of this volatile activity is due to day and swing traders who often trade according to patterns on charts or graphs known as "Japanese candlesticks." There may be little actual relationship to the election itself.

Americans generally turn to the Democrats during tough economic times. The best example of this was during the Great Depression. Bill Clinton also appeared to have benefited from the recession that hit during George H.W. Bush's term. There appears to be a general perception that Democrats will do more to help struggling workers and families, and those who are down and out.


US stock index futures down after Obama win
Reuters - 11 hours ago
By Joanne Frearson LONDON, Nov 5 (Reuters) - US stock futures were down on Wednesday, pointing to a lower open on Wall Street, as investors focused on the ...
Has Obama’s Rise Caused the Markets to Fall? Forbes
Stock Set To Pull Back Wednesday Morning After Obama Elected President RTT News
US stock index futures fall after Obama win Reuters

 President-elect Barack Obama is facing several daunting tasks, including repairing the fragile American economy.Play
Obama Facing Daunting Economic Task
CBS 3 Philadelphia via Yahoo! News - 16 minutes ago


Hannah said...

My humble musical letter to president Obama:

Hannah Friedman

Alan said...

I am optimistic about Obama's ability to drive an increase in the stock market. He just needs time to put his team together...and he could benefit from patience from my fellow Americans. For those who are in the market, this is the time to wait it out, not sell off.


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