Recent stock market drop caused by Obama win?

I think that the markets have been fluctuating long before Mr. Obama's election. I doubt very much that there is any correlation between stock market drop and Mr. Obama's election. That said, there could be a market reaction to the idea that Mr. Obama will be in office next year. I would envision that those opposed to Mr. Obama and Democrats in general, are using scare tactics to drive market prices down, where they can buy low then sell high when the economy recovers in a couple of years. They'll make a ton of money!

The answer to this complex question like the answer to so many other complex questions is, " Yes & No ". Yes, the recent stock market drop was caused by the 0bama win in that an ongoing DOWN trend was acerbated by the election of 0bama and the fact his economic policies as stated will make the economy worse. No, the recent stock market drop was not caused by the 0bama win as there already was a stock market decline in progress that had not yet terminated and the resulting drop in stock prices was not greater than what would have occured anyway, only faster. The answer as to whether or not the 0bama win caused stocks to drop depends on one's perspective. Better questions would be: "Will 0bama's stated policies help the stock market rise again after the DOWN trend is over?". "Will 0bama's stated policies cause the stock market to stay DOWN longer?" "Will 0bama's stated policies favoring more union membership do for the whole country what the UAW has done for the auto industry?"

I have to admit that I am not his biggest fan, but think that the stock market drop is because we are in a recession. It has been bouncing since before the election!

Stock markets go up and down depending on the prevalent mood sweeping through the markets. Though stock markets can react badly if a government is elected which they believe will be detrimental to their profits (ie a socialist govt), that is not the case here. What is the case is that stockmarkets have been plunging due to fears about the banks, then they went back up when the panic subsided, but now they are going down again because it has dawned on them that the real economy is going down south and that will affect their profits badly. But then it may well bounce back on the news of further interest rate cuts and the G20 meeting, if this is seen to herald coordinated worldwide action to stimulate the world economy. Then again, if the G20 proposes too deep unfunded tax cuts or keynesian spending increases, the markets might then start to worry about yawning budget deficits and panic once more, so then they might go down again. Once the first 'green shoots' of recovery appear in economic / housing data, then stock markets will rebound on the anticipation of future profits to come in the following years. I would add that in view of the theory of contrary investment, now might be a good time to invest in the stock market as the shares are going pretty cheap (of course, you have to be prepared to hold on to your investment for a number of years).

stock dropping is affected by comprehensive reasons. it's easy for economists to give certain reason to explain it, instead of predicting it. the one you mentioned should be one of those reasons

US stock markets actually rallied (rose) when Obama was declared the winner. if i recall correctly, DJIA rallied by more than 500 points on that day. it also triggered stock market rallies in most of the countries worldwide. however, the US stock markets fell the day after that. the reason is that the investors returned to worrying about the global recession. Obama's victory brought a temporary rally to the US stock market. unfortunately, the markets went back to "red alert" mode the next day. if i recall correctly, DJIA fell around 400 points the day after his victory.

It may be partially true.People have been suffocated by the continuing economic slow down and related crises. They have been greatly affected by steep fall of the stock indices. There are other social and economic factors too. Obamas's victory is mostly attributed to the needs of the present time when the world is passing through a transition;people want a radical change in every aspects. Thanks.

I have to agree. During the campaign, whenever McCain came up in the ratings, the stock market would go up and whenever his ratings were going down, it would go down - consistently. I don't necessarily know why this is, since so many people think that Obama is the answer to our economic problems. Evidently there are plenty of people that don't agree.

That is absolutely ridiculous. The stock market was dropping long before Obama was elected. Even more so than now. The stock market crashing has to with everything but Obama. What about the mortgage problems causing foreclosures to go through the roof, bankrupting banks and mortgage companies? How about record unemployment hurting companies? What about the cost of fuel skyrocketing and compromising the profits of major companies? Let's not be ridiculous and try to blame even something like this on Obama.