Pabst. If only you were as objective in your politics as you are in your approach to the market, you might be more convincing. Any objective observer will realize that current economic reality is affecting the current market to a far greater extent than the outcome of the election. I suppose you'll next claim that all those CDO's and CDS's became illiquid because an Obama victory was anticipated.
Credit contraction was no more than 60-70% of the break. Yes the global move toward leftistism is a primary concern from this point on to investors. What IS a stock market? It's the capitalization of earnings. Nothing more. P/e's are shrinking in part due to consensus that "e" will be negatively impacted by slowing economies. "E' is also under pressure by global political factors limiting the amount of "net' E that makes it past the tax man. The "P" is also impeded by increases on cap gains. Changes in variables change the sum of equations, no? WITHOUT DOUBT leftism was CAUSED by economic weakness. A strong economy and McCain is President. Tomorrows (valuations) are predicated upon the policies of TODAY and vica versa. Everything in life is ying-yang. That being said I'm not bearish on stocks at this moment. There will be better prices than these to short and I believe there's a 70% chance a multi year low is in. If not we're in for a real catastrophe.