Hugh Hewitt writes:
On Friday night’s Hannity & Colmes, I noted that markets had been “pricing in” the consequences of sending President-elect Obama and strong Democratic majorities, and my e-mail box filled up with outrage at the idea that the president-elect caused the market collapse.
Which goes to show that the president-elect’s partisans aren’t going to be listening very closely when anyone criticizes the new president. Of course the president-elect didn’t cause the market collapse. But the numbers post-11/4 are tough to ignore.
With the polls still open on election day, the Dow closed at 9,625, the NASDAQ at 1,780 and the S&P 500 at 1005.
By comparison, yesterday the markets closed at 8,497, 1,516, and 873 respectively.
That’s the bad news. The good news is that more and more voices are being heard noting the absurdity of the panic the economy is gripped by, and predicting that while there is a recession which will be as difficult as any recession, the underlying fundamentals are very strong indeed and that stock and commodities markets are oversold, real estate fairly priced, and bonds too rich for the real data.
As Hugh concludes, “The election of Obama didn’t cause the market collapse. But worries about his policies have certainly taken it lower than it needed to go and will continue to act as an anchor on stocks until some clarity emerges about the direction he intends to head. The sooner the better on that.”