Wednesday, June 04, 2008

Stocks Still Don't Like Obama

Last night on Kudlow & Company we discussed the theory suggesting the stock market sold off a hundred points earlier in the day -- despite Fed head Ben Bernanke's bullish King Dollar statement -- because of the AP headline announcing Obama's impending nomination.

As the chart above clearly illustrates, the market nosedived mere moments after the AP story broke.

My friend Bill Griffeth also mentioned this interesting coincidence earlier today on CNBC's Power Lunch:

We couldn’t help but notice yesterday, around 1:25 pm ET, when the Associated Press came out and announced that it had done the math and figured that Obama truly had virtually clinched the nomination, it was at that precise moment, when the stock market started to fall. And the Dow, which had been slightly positive, virtually unchanged, suddenly had a 100-point decline…Is it possible that Wall Street is indeed rattled by [Obama’s] policies as it pertains to taxes? And, most especially, his desire to increase - almost double - the capital gains tax?

Sure makes you wonder, doesn't it?