Today in the market, Wednesday, November 05, 2008: Stocks plummeted on Wednesday, a day after Barack Obama’s historic victory in the U.S. presidential election, as a fresh batch of dismal economic data underscored the massive challenges awaiting his administration.
The drop marked Wall Street’s biggest loss ever on the day after a presidential election, coming immediately on the heels of its biggest Election Day rally on record in the previous session.
Selling hit across the board, with shares of big manufacturers, including Boeing as well as banks, technology companies, home builders, retailers and energy companies among the biggest casualties. (headline & commentary courtesy of Reuters)
ETF/CEF Low Volatility:
- FXY – CurrencyShares Japanese Yen Trust
ETF/CEF Discussion: An ominous sign the large selloff following yesterday’s election. I hope it is just profit taking and not a systemic problem. Unfortunately this election may not be positive for the economy and the market. In talking to a money manager that handles some big value accounts, he is seeing a large number of his clients wanting to sell this calendar year to take advantage of the 15% capital gains tax. It is uncertain how high this tax will rise under the newly elected.
Today’s pick can be classified as an investment that may sidestep the problems with the US market. As you will notice form the chart it has had an almost parabolic run and then pulled back. You might want to take advantage of this pullback.
