A case of postelection nerves sent Wall Street plunging Wednesday as investors, looking past Barack Obama's presidential victory, returned to their fears of a deep and protracted recession. Volatility swept over the market again, with the Dow Jones industrials falling nearly 500 points and all the major indexes tumbling more than 5 percent.
Funny, but I remember that there were recession worries before the 2000 election and the market did just fine into the summer beginning on election day. I remember the Democrats calling the 2004 economy the worst since Hoover, yet the week that Kerry conceded, it turned up more than 5%.
The day of the election, the stock market, driven by what people perceive to be it's future value went up 500 points. On the first day that we discovered that Obama is going to be the President, it plunges back down. Sounds to me that the folks expected McCain to win yesterday and when that didn't pan out, they sold. AP even reported this morning that foreign investors "took their profits out" of the market upon learning that Obama won. Of course, they've changed the story since, but it's tattooed on my brain.