I would love to say yes. However, I can't wholeheartedly put all the blame on the election result. I do believe that smaller investors are throwing in the towel--just because of the fear that the market will go lower still. And, I do believe investors are also rethinking whether or not they want to be in the stock market at all, because of the OBAMA's confiscatory tax scheme.
But what were the market forces which moved this market down in the past couple of sessions?
(1) BAD NEWS and (2) poor sales and or earnings projections
On November 5th Cisco Systems projected sales and earnings are "gloomy." Cisco expects sales for its current quarter to drop 5 to 10 percent from the $9.8 billion reported in the same period last year.
John Chambers, Cisco's CEO said: "The environment has changed dramatically in the last two months," words like these move markets...
The second reason the market tanked was due to depressing retail sales results: "According to the ICSC-Goldman Sachs index, retailers had their weakest October performance since the index's inception in 1969. Sales fell 1.0% compared with a 1.0% gain in September. Of the 16 retailers reporting results on Thursday, Thomson Reuters said 60.0% missed expectations and only 33.0% beat." (From FORBES)
With the promise of higher taxes from Obama, it will not be good for the economy. Higher taxes have never stimulated economic growth.
Do I think an Obama administration is going to be good for investors or consumers? No.
- For consumers, increased taxes on Corporations will be passed on to them. It is ludicrous to believe that Corporations pay taxes, they don't.
- Second, investors can look forward to higher Capital gains taxes, which means less money to reinvest and or spend.
January 20th will be here before we know it, we'll see if Obama can walk on water.
Comments(25)