The Market Welcomes Mr. Obama With A Smackdown

November 5, 2008 6:30 PM EST
The day after Barack Obama was elected to be the next President of the United States, the stock market dropped throughout the day, closing at the day's low. In fact, the Dow Jones Industrial Average (DJIA) closed down 486 points or just over 5%, Nasdaq closed down 98 points or 5.5%.

The market definitely did not roll out the welcome mat for Barack Obama, and hopefully, today is not a precursor for what it'll be like during the Obama presidency. However, one must be fearful of Barack Obama's tax plan on dividends and other policies that may have a negative effect on the stock market. If the market continues to slide, investors may begin referring to the the bear market as the 'Obama Market.'

Lastly, one thing that could be fearful to investors, and drive the stock market down further, is something Obama said in his acceptance speech last night.

"Let us remember that, if this financial crisis taught us anything, it's that we cannot have a thriving Wall Street while Main Street suffers."

In other words, Wall Street is likely not to thrive as job losses and main street continues to suffer from the tough economic environment.

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