Posted on 01/20/2010 11:29:54 AM PST by steve-b
So what happened to the victory dance that was supposed to take place at the NYSE if Scott Brown won Ted Kennedy's Senate seat? At mid-day the Dow is down almost 200 points.
Analyst Hugh Johnson says traders are viewing the Massachusetts upset through a different prism today. Today the reality is setting in that loss of Democratic control in Washington could mean less federal spending, less fiscal stimulus, less government support of a weak economy. He says the change in the political landscape casts a shadow over the assumption that if the economy were to falter again, the federal government would step in with another round of stimulus. As a result, stocks, commodities, oil, even gold are all down today on fears of slower growth....
(Excerpt) Read more at blogs.abcnews.com ...
Everyone has to have hope, even the neocommie lib bloggers down at ABC.
..they missed Buffet saying “wat da ell is odumbo doing?”
What happened last night in MA creates instability in the health insurance industry and creates variability. Health care reform may not pass. 0bama's communist agenda may be stopped.
It's OK.
Since my company is involved importing & distributing high-end audio products from Europe and Far East, I pay close attention to the US$. Today, the US$ has gained in value vs. Euro - portends good things ahead , hopefully!
So these investors would rather risk being nationalized?!
There’s a place for them to go, no, not that place...
Venezuela. Lots of stability in the government there.
Geez, Betsy is thick.
Everyone knows you buy on the rumor and sell on the news.
Today was all about profit taking.
Yesterday was the run up. Now Brown’s victory is already factored in.
I guess the free market has to get back to free market principles, and rise and fall on what the market decides, not the gubermint
There was a celebration yesterday, and today we get back to the reality of Obamaoism. One less Democrat is a start, a sign that people are waking up.
I called this days ago. Once the election was decided the same people who have been running the market up and down and getting RICH would sell off.
China, Hong Kong, and European markets all fell hard before the Dow even opened. A lot of it due to China tightening credit to avoid a bubble to slow down growth as its GDP is predicted to be above 10 percent.
Plus, the dollar has soared in value, in part due to the Obamacare boondoggle being crippled by the Mass vote. The strength of the greenback drove down the prices of gold, copper, etc and commodities and resource stocks which was also refelected in the markets fall.
Add to that the markets were over due for a pull back when traders and investors take their profits and this fall is not surprising.
I posted on this before the election. See my post #6
http://www.freerepublic.com/focus/f-chat/2430627/posts
Bottom line, The value of the USD is inversely related to the value of equities.
The dollar is up 1.33% as I type ($ index, which measures it against multiple currencies), and the Dow Jones is down 1.39%.
Coincidence? Not to sound too much like Obama and give myself too much credit, but I called this one!
Now, if only I had put my money where my mouth was. I didn’t sell a thing, still all in.
The market drop has noting to do with the fact that IBM and Morgan Stanley announced weaker than expected earnings.
Looks like Jim Cramer was wrong... what a suprise...
So, so obvious, Jeez. It used to be great that anyone could be in journalism, but if one is about to expound, doesn’t decency demand that there be some basic subject mater knowledge ?
NEW YORK (Reuters) - Wall Street suffered its worst slide of 2010 on Wednesday as investors worried that lending restrictions in China could hurt the global economic recovery, while a conservative outlook from IBM dented recent optimism about the technology sector.
Official media and banking sources said Chinese authorities instructed some major banks to curb their lending over the rest of this month after an early burst of credit.
Signals that China may curb its economic expansion hurt shares of commodity-related companies, dragging the S&P materials sector down 2.3 percent.
“The Chinese tightening is having a spillover effect on sentiment here,” said Michael James, senior trader at Wedbush Morgan in Los Angeles.
Hello? That was yesterday.
I agree the victory was already factored in, but the run-up seems to have been over more than one day—a week or so, maybe.
Why do I doubt a direct correlation between Brown winning and stocks dropping?
Since when has government bailout money (which means more and more debt) equaled stock growth?
Nice try ABC.
“even gold” is down today? Hah, that was the only no-brainer of the bunch. Less government-run healthcare = less money printing = less inflation = bad for gold.
More proof BTW that gold isn’t in a bubble. Something in a bubble doesn’t drop 4% in a day.
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