Posted on 01/04/2021 9:37:43 AM PST by BradtotheBone
Stocks dropped on Monday, the first trading day of 2021, amid concerns about global coronavirus cases and the Georgia runoff elections. The Dow Jones Industrial Average traded 706 points lower, or 2.3%. The S&P 500 dipped 2.4%, and the Nasdaq Composite slid 2.5%. Both the Dow and S&P 500 hit record highs at the open.
Coca-Cola and Boeing were the worst-performing Dow components, falling 4.9% and 4.8%, respectively. Real estate fell 3% to lead the S&P 500 lower.
Wall Street is keeping an eye on Georgia as the state prepared for Senate runoff elections on Tuesday, which could give Democrats a majority in the chamber. “If the GOP wins just one seat, they will likely stonewall some of Biden’s more ambitious proposals, but a Democratic sweep of both elections might give the incoming administration free rein on their policy agenda,” wrote Jason Pride, CIO of private wealth at Glenmede.
(Excerpt) Read more at cnbc.com ...
Precious Metals are making up the difference; Diversity is your friend!
But, I AM expecting a stock market TANK if Biden is sworn in, and worse economic days ahead, for sure.
Plan accordingly. It’s not like we haven’t been warned! :)
Yep, sell off those stocks into cash, cash that will immediately devalue at an accelerated rate once Biden is sworn in. Most everyone but the investors in the know are going to get screwed under Biden.
‘Effing morons. They support Dems to the hilt, then get nervous because they gave them the WH and both chambers of Congress.
They ran the market up after Joe and the Ho “won” because it meant lots of cheap labor and open the revenue streams from China.
Now they have second thoughts because the Dems will do what leftists do, nuke the economy.
Sometimes I think it would be best to just pull it all out of the market, take the tax hit, and then laugh as I watch that big casino bounce up and down for inexplicable reasons.
This has nothing to do with politics. There is normal year end selling to take profits and realize losses to offset the profits. But in 2020 the markets in the last weeks set record after record and any serious yr end selling would have meant a large Capital Gains hit. By waiting until 2021 to take the gains it puts off for at least a year the need to pay CG tax on the profits plus it allows them to offset these gains by possible losses incurred throughout this year.
Many are quick to assign politics to market movement but in fact it is corporate earnings which move the markets. To the limited extent a political event will cause a market move that move will be short term and occurs when selling is done in anticipation of other investors selling and not for any reasons related to the economy.
WHAT GA Runoff? The UNLAWFUL one that has machines connected to the iNet, which voids Fed certification of the machines? This should cause a demand to recuse the Governors, Senators, and Representatives allegedly ‘elected’ from the 6 battleground and 31 other states who use the Dominion malware and machines. Jovan Pulitzer exposed this on live video in the past couple of days.
This has nothing to do with politics. There is normal year end selling to take profits and realize losses to offset the profits. But in 2020 the markets in the last weeks set record after record and any serious yr end selling would have meant a large Capital Gains hit. By waiting until 2021 to take the gains it puts off for at least a year the need to pay CG tax on the profits plus it allows them to offset these gains by possible losses incurred throughout this year.
Many are quick to assign politics to market movement but in fact it is corporate earnings which move the markets. To the limited extent a political event will cause a market move that move will be short term and occurs when selling is done in anticipation of other investors selling and not for any reasons related to the economy.
I disagree. There is nothing that will prevent capital gains taxes from increasing in 2021 if the dems take control of congress under a Biden administration. The time to sell was last Thursday in 2020.
“There is normal year end selling to take profits and realize losses to offset the profits.”
Yep, normal healthy correction. Long overdue.
“But, I AM expecting a stock market TANK if Biden is sworn in,”
The market will do good under a Biden pres and a Republican controlled senate. If dems take over senate it will be hell. The good side is the re is another election in 2 years and hopefully a correction of House and Senate.
The Big banks and big tech which controls the market wanted Biden in and the market itself will do well. The economy may not.
Any stocks sold today are 2021 offsets -usually done in Dec. to offset proceeds of other sales during the year.
The dollar lost 18% value last year whereas the Dow gained 7% and S&P 18%. Ppl have to be invested to offset inflation. Buy on the dips.
After the way the corporations and elites sabotaged the Trump administration, I don’t care if the market crashes.
I just hope normal people aren’t too affected.
Yep, sell off those stocks into cash, cash that will immediately devalue at an accelerated rate once Biden is sworn in.
Yep. I think long term the stock market will be worth more than inflated currency.
“I disagree. There is nothing that will prevent capital gains taxes from increasing in 2021”
There are “knowns” and “unknowns” and you are confusing the known, ie CG hit in 2020 from powerful market advances those final few weeks of last year to an unknown which is the probability of a Biden tax increase on CG or taxes in general. Also by deferring the selling into 2021 it gives the seller a full year of time to offset the gains with any coming losses.
As I’ve said elsewhere, a Democrat “victory” in Georgia would prove one thing - voter fraud exists, and voter fraud works.
And take the logical conclusions of that down a few steps. The first obvious one is that leftist policies will be in charge. The socialists and SJWs will be in charge. Watch your money
But the next conclusions are far more ominous - America’s political system isn’t what we all thought it was. If our electoral system is fraudulent - what else is fraudulent? The dam will really break open.
Mostly agree, but the seismic political events on the horizon must have investors spooked.
I don’t think the market had factored in the degree of groundswell of Trump support for the election steal, both in DC and on Main Street.
Civil war possibilities are growing rapidly. The conservative base is not going to take this election steal lying down. This time is MUCH different. Both sides are digging in their heels, and it could get very ugly, very quickly.
If Trump prevails, he is going to go after Facebook, Twitter, Google, et al, with a vengeance. Not going to help the major indexes.
My two kroons.
“Buy on the dips.”
Of course. With rates where they are today keeping any more than about 6 months expenses in cash makes no sense.
It sounds like the inside polling shows Lin Wood is going to get his way and hand over the Senate to the Democrats.
...wonderful.
I mostly agree about investors being spooked. We know uncertainty is what the Markets least want.
That said the institutional investors while they may react in anticipation of sell off event they will usually get back in pretty quickly whereas individuals usually get out and stay out way to long because they are convinced the sell off will never end.
Wait until Flimsey Grahamnesty, Micro Rubio and the rest of the Bush League Republicans pass amnesty for illegal aliens and create a permanent Democrat majority........
Biden won’t be much different than Trump when it comes to the economy. The markets can deal with Biden much easier. Both threw/will throw trillions at government. Greenies, ICLN, RUN, etc will continue to climb.
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