(480) 807-9300



  • Bankruptcy
  • Clint W. Smith, P.C.
  • No Comments
  • May 24, 2013


Stock Market Dive of 2012

In the two day after the presidential election of 2012 the stock market took a major dive…

In the two day after the presidential election of 2012 the stock market took a major dive, it declined 300 and some points and the next day another 120 the next day, combined that was the biggest drop of 2012.

Why did do that? Well some speculate that it had to do with the European crisis continuing. Some speculate it had something to do with the fiscal cliff that suddenly everybody realized needs to be talked about, even though it had been ignored in the presidential debates and all of the discussion leading up to the election. Well that’s all true maybe those things factor and we never know exactly what wall street is thinking it’s a fluid thing, its lots of different people we don’t know exactly what’s going on there.

What we do know is those 2 drops happened in the 2 day after president Obama got re-elected, isn’t there some kind of connection there? I thought I found it interesting in reading and hearing the news that almost no one dared say anything of the negative reaction of wall street and the markets to the re-electon of president Obama. This isn’t “big money” this is not banks this is regular people holding regular stocks who were concerned. A lot of it has to do with that at least and their stockbrokers who handle their money for them.

So its not big money against everybody else and it is certainly worth considering that wall street does have a bit of a rift with the obama administration, we don’t know what that is about, but the bottom line is it took a dive and people were trying to explain it away with things that had already been going on. The fiscal cliff was not new. The continuing problems, one of the NPR reporters said it was due to the continuing problems in Europe, well continuing problems don’t cause our biggest drop of the whole year, in a day and by coincidence just the day after the election.

So I don’t know what all caused that but I think it has something to do with the uncertainty now that people feel and people just need to be careful with how they handle money going forward, we’re going to keep an eye on that so tune in and we will let you know what happens next.

No Comments

Leave Comment