The US Presidential election ended November 6, 2012. Since that time, the market has fallen 3%.
There are a multitude of reasons for this, but the primary one is the fact that the markets is beginning to realize two key items:
Everything that was a problem in the run up to the US election is still a problem (in fact many issues are now worse than they were a few months ago).
Having engaged in pre-emptive and extreme actions to keep things calm in the run up to the election, the US Fed and ECB have run out of effective monetary bullets.
Regarding #1, according to the ECRI, as of June 2012, the US is back in recession. The ECRI has proven far more accurate and timely in predicting recessions than the NBER. And now that the election is over I expect other US data (the ISM, LEI, and employment numbers) to start moving towards reality (bad).
By the way, the US just hit a new record for food stamp usage.Continue reading on www.zerohedge.com