"President Obama; that's why people aren't buying stocks," says Todd Schoenberger, managing principal at The BlackBay Group.
Schoenberger is aping conventional wisdom. With stocks down 5% since the votes were tallied it's hard to argue that something in the results spooked investors. The question is what it was, since most of the results were exactly as expected. Schoenberger suggests it's a matter of there being no meaningful changes in the roster at any political level.
"Bottom line is that you have a Congress right now that can't seem to work with the President of the United States." he says in the attached clip. With the President back in office that gridlock unleashes an assortment of woes scaring off traders enough to cause the market to rollover without anyone buying the dip.
Whatever the merits of the arguments Schoenberger rattles off four specific reasons why traders aren't buying stocks. The claims are his own but there's nothing in his list you won't hear on any trading floor over the last week:
1. Companies aren't going to hire with the increased expenses associated with Obamacare
2. People aren't going to have money for discretionary spending when taxes going up for the 1%
3. Small business owners won't expand
4. Higher tax rates for individuals making over $250,000 a year will result in a general lack of ambition.
"There's no reason right now to work hard and actually do something with your life, to actually become a huge success," Schoenberger wails, "because, if you are, you're the villain and villains are meant for Batman and Spiderman movies, not for America right now."
Apparently we all have some time to kill. Spend some of yours by letting us know whether or not you're buying the dip and what the government has to do with it. Comment below or visit us on Facebook!
- Politics & Government