After voters returned a divided government to power, investors took flight, fearing that Democrats and Republicans may not be able to reach a compromise on the fiscal cliff before a series of tax increases and spending cuts start Jan. 1.
”The re-election of President Obama removes one uncertainty that has been weighing on the markets over the last few months. But they are none the wiser about if, how and when Congress will deal with the colossal tightening in fiscal policy scheduled to occur early next year,” according to Action Economics.
“And with Congress still split, President Obama will struggle to garner bipartisan support for a more comprehensive agreement that addresses the longer term issue of how to put the nation’s finances back on a sustainable path.”
The Dow Jones industrial average dropped below the 13,000 mark for the first time since August, falling 2.4%, or 312.95 points, to 12,932.73.
This was the first three hundred-point drop for the blue chip index in almost a year.
The Nasdaq composite lost 2.5% to 2,9437.29. And the S&P 500 declined 4.3% to 1,394.56.
Source:
Obama Victory, Grim Europe Forecast Forces Dow Below 13,000 As Stocks Plunge - Forbes
Link: http://www.forbes.com/sites/abrambrown/2012/11/07/obama-victory-gets-chilly-wall-street-reception/
About Me
- Robert Lewis and Jennifer Hodson
- Vancouver Island, British Columbia, Canada
- Jennifer believes we live in the garden of Eden and I believe that we are destroying it. Our saving grace is within ourselves, our faith, and our mindfulness. We need to make a conscious effort to respect and preserve all life.