November 06, 2008

Post-election Market Bounce Continues

Wait until investors learn more about Obama
The post-election bounce in the US stock market continues unabated. The Dow Jones Industrial Average, which fell 486.01 points the first day after the votes were counted, was down another 443.48 at today's close. That is a 929.49 point loss, in spite of government bailouts, incentives and promises of more costly government intervention schemes economic programs to pump the market back up.

Of course, this record breaking post-election market collapse hasn't got anything to do with Barack Obama's election. To suggest that investors are worried about Obama's Marxist plans might be, well, racist. Got to get behind our new leader, right?
In yesterday's post, the old feeder opined that the investors might not have liked what they saw at the Obama rally outside the White House election night. Scenes like this:

Communists for Obama - out from under our beds
Of course there was our new flag, the red one with the hammer and sickle that Barack's delirious supporters were waving. That sort of thing wouldn't make investors think those stories about nationalizing our banks and major industries might be true. Would it?

It must be the unemployment numbers or consumer confidence that are responsible for the mood to sell that has captured Wall Street. Sure, things look dark, but not because of investor concerns about socialism. The market will turn around any minute now. No need to panic.

Click for the Hammer and Sickle Video
The old feeder wouldn't be surprised to see an uptick any time now. Surely there are still suckers out there that see this implosion as an opportunity to buy cheap. I fear their fate will be "Buy Low - Sell Lower" though, unless they are peculiarly adroit day-traders.

Capitalism. It was nice while it lasted.
See: Historical data on market reaction to US Presidential elections going back to 1896. From the Interested American.

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