Obama wins, Wall Street tanks

Greek elections, fiscal cliff, socialism worry investors Photo: A. F. Branco

WASHINGTON, November 7, 2012 – The market surged yesterday, retaining most of its gains into the predictable afternoon selloff. Curiously, coal and other energy stocks logged terrific gains after months of either meandering or tanking. This indicated a likely Romney win, which would have been nothing but good for America’s homegrown fossil fuel industries, under constant, ruthless attacks by President Obama’s leftist EPA minions. 

But, paradoxically, gold also had one of its rare recent “good days” yesterday, indicating at least in part that the Fed would be continuing indefinitely its policy of inflating the U.S. out of its financial pickle—precisely the desired policy of the Obama Administration and the do-nothing Harry Reid Senate. Who to believe? 

We now have our answer. The combined triumph of the empty chair and its comical sidekick, Laughing Boy, passes the baton back to the Senate’s Do-Nothingcrats. The result: the market is taking an extended swan dive this morning, fearing the consequences of last night’s Election 2012 tally, its effect on the impending January 1, 2013 fiscal cliff, and the equally momentous (we think) Greek elections today. 

We’ll opine more on the politics of all this elsewhere. Our purpose here is mainly to figure out how to make money in a market that’s more heavily than ever influenced by the redistributionists who re-elected The One last night; namely, the HFTs and algos who redistribute middle-class savings and investments to themselves and their customers who live on the top, and the 47% of non-taxpaying Americans on the bottom half. These latter voters now know for sure that there IS such a thing as a free lunch. And so, rationally, they voted for that. 

Under these circumstances, it’s probably best to remain cash-heavy in our portfolios and lay low a bit longer to see what happens before making any commitments.

Best future investment bets, once we get an answer to the fiscal cliff issue, will probably be housing (which the Fed is trying to keep on an upcurve), agriculture (people still have to eat), and the occasional banking and insurance company issues. Add to these pharmaceuticals, given their co-opting of Obamacare which is now guaranteed to proceed unhindered. 

Then again, there’s also an argument to be made for going entirely Galt at this point. But that’s probably for another column in another place. Meanwhile, enjoy the day if you can, and don’t look at the averages. 

Disclaimer: The author of this column maintains several active trading and investment portfolios and owns residential and investment real estate.

Illustrations, charts, commentary, and analysis are only the author’s view of current or historical market activity and don’t constitute a recommendation to buy or sell any security or contract. Views, indications, and analysis aren’t necessarily predictive of any future market or government action. Rather they indicate the author’s opinion as to a range of possibilities that may occur going forward.

References to other reporters, analysts, pundits, or commentators are illustrative only and do not necessarily represent an endorsement of such individuals’ points of view. If specific investment vehicles are mentioned in any article under this column heading, the author will always fully disclose any active or contemplated investments in said vehicles.

 

Read more of Terry’s news and reviews at Curtain Up! in the Entertain Us neighborhood of the Washington Times Communities. For Terry’s investing and political insights, visit his Communities columns, The Prudent Man and Morning Market Maven, in Business.

Follow Terry on Twitter @terryp17

 


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Terry Ponick

Now writing on investing, politics, music, movies and theater for the Washington Times Communities, Terry was formerly the longtime music and culture critic for the Washington Times print edition (1994-2009) before moving online with Communities in 2010.  

 

 

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