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I wonder if we have any stock market experts who can answer this question: Has there ever been a time in America where a new President came into office and the stock market fell 10% or more in a month from the day they took office?
It seems to me that Wall Street has given a total thumbs down to this new President more than anytime in history.
I wonder if we have any stock market experts who can answer this question: Has there ever been a time in America where a new President came into office and the stock market fell 10% or more in a month from the day they took office?
It seems to me that Wall Street has given a total thumbs down to this new President more than anytime in history.
(And I voted for him)
I think it's fairly common.. it's a case of "buy the rumor, sell the news." Following GWB's inauguration, the stock market went from 10,787 in December '00 to 9,504 in March '01.. a drop of 13.4%.
The OP said one month starting... not one month before starting to 2 months after... an to answer the OP's question, no, usually there is a honeymoon period where stocks go up... but then we are in a recession... so its not completely an "Obama" effect although he does have an effect on it and shares some of the blame for it to go down...
The Dow lost a record-breaking 929.49 points in the two days of trading after Obama was elected. After dropping 486.01 points on Wednesday, November 5, a 443.48-point loss followed on Thursday, November 6. The Dow has not had a bigger two-day point loss in its 80-year history.
Inauguration Day set another record. The January 20 plunge was the worst in Inaugural history, exceeding the Dow’s 2.89% decline in 1963, when Johnson assumed the presidency after Kennedy’s assassination.
From November 4, 2008 through February 12, 2009, the Dow fell 18%-- a larger drop than during the devastating September-October plunge. The market tanked all January, as Obama unveiled his stimulus plan. It ended up the worst January for the stock market since 1896 (113 years).
February brought new lows, and the market continues to set lower lows. Dow 7500 was breached and the market is set up to break Dow 7000. Other indices are responding comparably.
The Dow has dropped almost 2500 points since Obama was elected. It has declined continuously and precipitously. So, there's a definite pattern, and it's far from common.
I didn'tvote for Obama, but I do wish him well. However, given the economy and all the bad news that has been reported in the last six months, I doubt ANY new president could have prevented the amazing stock drop since November.
The market doesnt like to be shaken up by external forces, but it was sliding long before Obama took office - remember when McCain had to rush to DC to solve the economic crisis? "The fundamentals are sound"? That was October, a month after the slide began in earnest. October was when the economy became a major topic in campaign rhetoric and in national awareness.
Even if McCain had been elected, things would hardly be staying the same, and many people would be saying McCain personally created all this chaos himself. But it wouldnt be true, just as it's not true of Obama.
Obama and his economic team and the IMF and everyone who runs these things is trying hard to slow and stop this global crisis.
Speaking of McCain, even Phil Gramm recently said yes, I guess it is time to re-regulate.
Phil Gramm is a corrupt idiot as well as McCain... you don't "choose" which replies they make and state that as something holier than it was six months ago when they said the opposite... The markets react to Obama's plans and statements, sorry that's just a fact regardless if he was in it for two days versus two years... I don't hit someone and expect for them to reply to me years from now...
IMO I think the markets were manipulated up to and just past the election.
Shadow banking, SEC not doing their job, money flowing into the very same investment banks that gambled it.
I think that investors are looking long term and thats why the market is crashing. I hate to think what it will look like a year or two years from now. Obama really needs to have somebody slap him and slap him hard to wake him up to prevent this oncoming disaster.
I didn'tvote for Obama, but I do wish him well. However, given the economy and all the bad news that has been reported in the last six months, I doubt ANY new president could have prevented the amazing stock drop since November.
You wish him well, or his presidency well?... cuz to wish his presidency well is to wish for this country to be headed for chaos... oh too late.
McCain would have had a much better handle on the economy, but would not have been able to do much better with a majority Liberal house, and messed up Senate.
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