Yahoo Finance sez: "Stocks plunge as investors ponder Obama presidency", and indeed the
Dow was down 5% as was the NASDAQ.
Obama's victory was surely to be expected and thus already capitalized, so what was the news?
That the Republicans still have the filibuster leaving the economy-saving Democrats hamstrung?
Or is it just a case of buyer's remorse?
Um, the market's drop mirrored Obama's rise in the polls pretty well, no? The difference between Monday and today seems to be the difference between an 85% probability and certainty.
ReplyDeleteI read the Yahoo Finance headlines everyday, despite how ridiculous they are. Typically at around 9 AM, they say things like "Stocks head for higher open as investors anticipate Fed rate cut". My experience suggests that about 50% of those market predictions are accurate.
ReplyDeleteKeyword: as
"As" creates an insinuated correlation. Two independent events are happening - stocks plunging and investors pondering - but it sounds like they are related. I seriously don't think investors are completing surveys about the motivation for their trades, but AP stock market reporters certainly act like it.
I don't think the market/investors were surprised at the outcome of the election.