Obama won a second term last night, and stocks gaped down at the opening bell. Personally, I believe the presence of a second term was the primary factor for the major indexes finishing the day almost 2.4% down. If the president's historical treatment of the business sector is any indication, businesses and US citizens could have a tough road ahead. The fiscal cliff we face could come to fruition if parties can not agree, and the lack of certainty stemming from the vagueness and negativity of Obama's reelection campaign leaves a lot to be desired. However, I do believe stocks will close the gap from today at least partially, and I believe stocks will eventually build a rally for a month or so as the political season cools off and politicians wait to voice what they actually plan on doing.
I was relatively happy with my decisions yesterday. I pulled out of around 10K in holdings because I believed Romney would lose. I figured a very tight race, which the polls indicated, would go to an incumbent nine times out of ten, and some of the financial support Romney received, which was not the same for McCain, indicated he was favored by the business community. I reentered multiple stocks this morning including Emerson (EMR), which I believe is a great decision for stagnant growth, and CNOOC (CEO), which is too established and big to really do all that poorly in the near future.
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