Two days of post election with the winner Obama has resulted in two days of market downturn to the tune of about 930 points on the Dow Jones Industrials (DJI) index.
This is still in keeping with my prediction that the stock market will begin settling out and forming a base ("Calming Down"). I'm pegging a DJI trading range between 8300 and 9500. Those aren't absolute precise figures, but I think they are close.
Obama needs to state make economic decisions known, though. As I previously wrote, I think that we will see a weaker market with an Obama win because no one really knows how his economic policies will shape up. I doubt that even he knows. He promised higher taxes - for the "wealthy" of course - but also backed down saying that he would postpone raising taxes if the economy is in recession.
I mentioned to my wife that a vast majority believe, probably, that the administration of President Bush is over and that Obama is now President. I think that Obama believes that, so it is now up to him to clarify and solidify his economic policy ideas. Waffling during the election is one thing; declaring uncertainty now is quite another. It's too late for that. Time to fish since cutting bait is no longer one of his options.
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