Stocks Take Biggest Post-Election Slide Ever

In exit polling that was conducted on Tuesday after voters had cast their decision for president, the economy was overwhelmingly mentioned as the number one issue on the minds of these civic-minded Americans. People are worried that over one million jobs were lost in 2008. The need to bailout the banking and investment industries is frustrating to many people who are struggling to pay their own bills. Overall, the news on our country's economy simply is not good. The voters determined by a convincing margin that President-elect Barack Obama will be the best choice to guide this country into a stronger economy. In the days immediately following the election, the stock market was not impressed.

The Dow Jones industrial average slid 486.01 points, or 5.05 percent, and the Nasdaq Composite Index lost 98.48 points, or 5.53 percent. This slide marked the biggest one-day loss ever following a presidential election. Were investors issuing a quick referendum on our future president? Concern over the transition may explain part of the drop, but it would be unfair to lay the blame solely at the feet of our President-elect. The election coincided with the release of new and dismal figures related to job loss, the announcement by Goldman Sachs Group Inc. that it is in the beginning stages of cutting ten percent of its employees, and a continuation of an economic downturn that is unrelated to our choice of a new leader.

As Ryan Larson, head of equity trading at Voyageur Asset Management, says, "We're in a really bad recession, period. Wall Street can spin it anyway they want to, but this is likely going to be more prolonged than people anticipated." So, those who were supporters of Obama's bid to our land's highest office know that the victorious candidate cannot improve the situation overnight. There are many months of hard work and challenging times ahead.

Are you interested in learning more about how this struggling stock market affects your investment and retirement plans? Are you nervous about the impact of a transition that necessarily occurs with any new president? I would love the opportunity to meet with you and discuss some of your specific concerns. Please visit my website to learn more about the financial coaching sessions that I offer.