Stock market dives on news of Brown victory
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The title of this post is meant in jest. It comes a day after pundits seeking cheap political points tried to convince everybody that the stock market had risen yesterday by more than 100 points because it wanted to see Scott Brown beat Martha Coakley in the race for Ted Kennedy’s Senate seat. Well, mission accomplished. But what has the market done today, having successfully influenced world events yet again? It has given back all those gains and then some. Oh fickle NYSE, what is your singular, easily reducible message to us this time?
Nobody tops CNBC’s Jim Cramer for hubris. And the man who Jon Stewart buried a few short months ago, was back to his old tricks.
I think investors who are nervous about the dictatorship of the Pelosi proletariat will feel at ease, and we could have a gigantic rally off a Coakley loss and a Brown win. It will be a signal that a more pro-business, less pro-labor government could be in front of us.
Hooray, a more pro-business, less pro-labor government in which health care reform is forever kicked down the road despite the fact that health costs will soon bankrupt the country. Fire up the band, boys!
Note to Cramer: When Obama took office on January 20, 2009, the Dow Jones index was at 9,625 points. At present (11:44 EST on Friday, Jan 20, 2009) it stands at 10,538.16, even factoring in today’s big losses. So, Cramer, STFU.
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Will health insurance stocks crash on the news that they will not receive mandated government funds?
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libtree,
Given that Cramer argues that health stocks have done just great under the prospect that Congress will pass healthcare, I guess his reasoning is that they’ll do even better now.
[...] Stock market dives on news of Brown victory – David Knowles – Paradigms Lost – Tr… [...]
Dave,
Although I can agree that there is little correlation of DJIA and POTUS, there is simply no denying that the fall of the DJIA for these few days is because POTUS has pivoted away from nationalized health care (doomed at it now is) and is now focusing on his populist attempts to bash/tax the big, bad banks. I tell you what, how about we wager something. I bet you that if any “profits” tax on banks actually becomes law, you will see the DJIA dive?!
patrioticduo,
While the recent dips in the market financial sector stocks may have had to do with the president’s plan, my guess is that by the time any legislation is passed, the market will have already have made its adjustments. The actual stroke of the pen wouldn’t do much either way.