Experts: had nothing to do with U.S. election
The Dow Jones plummeted 313 points the day after President Barrack Obama's re-election. KTRH's financial expert, Pat Shinn, thinks the problem began in Europe, not in the United States.
“We had weakness in Germany. We had weakness in Spain. When the European markets rolled over, the U.S. rolled over. Once the U.S. rolled over, computer sell programs kicked in and we sold until the closing bell rang,” Shinn said.
Shinn said the re-election of President Obama had nothing to do with what happened on Wall Street.
“When we looked at the futures contracts in the morning, we knew the results of the Presidential election, and yet futures were actually indicating a slightly higher open for stocks here in the United States,” Shinn explained.
There had been concern the drop in the Dow had something to do with the financial cliff. While that doesn’t seem to be the case, the ‘fiscal cliff’ has a lot of people concerned, including financial analyst and author Richard Rosso.
“Without this being rectified, everyone is going to get a tax increase regardless of where they fall in the income tax level tables,” Rosso said.
Rosso thinks Washington can make investors feel better by saying they're working on the problem.
“I think if the President came out and said they were making progress, or that something was being done, or there were examining it, that’s all the market needs,” Rosso told KTRH.
House Speaker John Boehner said the Republicans are willing to work with the President to get a deal done and avoid going over the cliff.
Hear the podcast with Matt Patrick and Houston's Morning News as he talks with author and financial expert Richard Rosso: