I'm Calling the PRESIDENCY for Barack Obama...

Raees wrote: And what will your excuse be when the stock market recovers its several days of loses?

The market will recover, and return to normal. If the president makes a speech that encourages optimism in the future of the economy, the market will rise. If he creates pessimism in the future, the markets will drop. Im my opinion, the drop in the market indicated a general pessimism as a result of the elections.

That's of course not the only factor. It'd be silly for anyone to claim a single influence controls the market.

But what the president does, and the results of elections cannot be denied as factors that can and do affect the market.

The market went down 5% the day after Obama's first win... Within one year it was up 75%... Must have been an accident?

Lessee... The last day of Bush's presidency the Dow was: 8,218.22 ... So, we've been hanging around 13,000 - 13,500 for months now... Wow! What a coincidence....

Wall Street Extends Losses: Higher Taxes, Spending Cuts Weigh
Major U.S. stock indexes fell more than 2% Wednesday as investors decided to take profits in the face of possible tax increases and fiscal cliff concerns.

The Dow Jones Industrial Average (DJI) dropped 313 points and finished the session below 13,000. Wednesday marked the Dow's largest daily decline in a year. The Dow was down 75 points to 12,856 in recent trading.

The S&P 500 Index (GSPC) had its worst performance on Wednesday since June, falling 2.4% to 1394.53.

As The Daily Ticker's Aaron Task and Henry Blodget discuss in the attached video, part of the reason for Wednesday's selloff stemmed from the expected tax changes that will occur under President Obama's second term.

Rates on capital gains will likely be raised to 20% from 15% on individuals earning more than $250,000. A higher capital gains rate would theoretically make stocks less attractive to investors.

Related: Obama Wins 2012 Election: Why Your Taxes Are Going Up

Low capital gains tax rates are widely believed to encourage investment, create jobs and raise total tax revenue. The tax rate on capital gains has been lower than the rate for ordinary income for decades.

The higher capital gains theory was also explained for the dumping of Apple (AAPL) shares Wednesday. Apple stock slid nearly 4% on Wednesday to $558, twice as much as the broader stock market decline.

This is not just rich investors pulling out- it's also institutional investors- the guys who manage our 401K's. They all know that the higher taxes mean lower potential performance margins- and that makes many stocks too risky.

They will be selling till the end of the year- and probably long after that.
http://finance.yahoo.com/blogs/daily-ticker/higher-taxes-spending-cuts-weigh-investors-markets-155956273.html

Don't people usually sell when the stock market is at a high? Look at how high it is compared to four years ago.

http://yhoo.it/TNVLF6

Raees wrote: Don't people usually sell when the stock market is at a high?

They sell when they're relatively higher than when they bought.

Or to cut their losses if they see a cliff coming.

The market went down 5% the day after Obama's first win... Within one year it was up 75%... Must have been an accident?

Lessee... The last day of Bush's presidency the Dow was: 8,218.22 ... So, we've been hanging around 13,000 - 13,500 for months now... Wow! What a coincidence....

They sell when they think it's as high as a stock is gonna be- or near it, and that's probably the truth right now for many many stocks.

LadyJazzer wrote: The market went down 5% the day after Obama's first win... Within one year it was up 75%... Must have been an accident?

Lessee... The last day of Bush's presidency the Dow was: 8,218.22 ... So, we've been hanging around 13,000 - 13,500 for months now... Wow! What a coincidence....

LadyJazzer wrote: The market went down 5% the day after Obama's first win... Within one year it was up 75%... Must have been an accident?

Lessee... The last day of Bush's presidency the Dow was: 8,218.22 ... So, we've been hanging around 13,000 - 13,500 for months now... Wow! What a coincidence....

Your keyboard is stuck.....

Yes, apparently some people have reading disabilities and can't process the information. It's like RMoney campaign ads--You figure if you repeat it, it might "take."

BearMtnHIB wrote: They sell when they think it's as high as a stock is gonna be- or near it, and that's probably the truth right now for many many stocks.

Saving that one for posterity.