Elections have Consequences: a Continuing Series

One of a series: Yesterday the markets closed at four-month low, matching levels not seen since June. The Dow Jones Average dropped 185 points (1.5%), to 12,571, the S&P 500 shed 19 points (1.4%,) ending at 1355 and the Nasdaq Composite slumped 37.1 points (1.3%), to 2847. The media has attempted to blame this on Greek financial woes, the fiscal cliff, and the fact that somebody saw a black cat crossing Wall Street against the light. But in truth the drop has been steady for over a week, as if something particularly disheartening occurred the Tuesday before last. As the election was staggering to its sorry climax, Dow Jones reached 13,112.44, the S&P 500 closed at 1,417.26, and the Nasdaq tech index 2,999.66. Each has fallen steadily since then (despite a few trivial gains such as occurred this past Monday), the Dow Jones alone dropping nearly 540 points. Tellingly, the CBOE Volatility Index (called "the Vix", for short), the market's so-called "fear gauge", jumped...(Read Full Post)