The Dow was down 500 points today, giving back all of its gains from yesterday.
This surprised me. Normally the markets have expected news built into them; and while I was hoping McCain would win, I figured there was a better-than-average chance that Obama would. I expected the market to drop a little at the start of the day, then move up again as the uncertainty of an election went away.
What this tells me is that the market expects Obama to be very, very bad for business over the next 4 years, and so yesterday's rally was little more than wishful thinking. If Obama is indeed a socialist at heart (and Europe sure seems to think so), then the market is right. An Obama administration is going to take money away from anyone who produces it, and give it to every slacker that they think will vote for them in 4 years. This could be a very, very difficult time to make money.
The good news here is that it appears that the Republicans will have enough votes to filibuster the worst atrocities, assuming they have the strength of character (I am thinking a much more colorful term) to do the right thing in the face of a hysterial lefist media. Given that congressional republican gave us this mess by acting like democrats in the first place, I am not too hopeful in the long term.
There's always the 2010 mid-terms.
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