Dow Jones Stocks Drop Over 300 Points – The Reason Why
The day after the 2012 election was not kind to the stock market. The Dow Jones dropped over 300 points, but why exactly did it happen. Whenever we hear of a stock market plunge, it doesn’t usually mean anything good. Before people start freaking out, let’s lay down the facts.
According to the Associated Press, many investors dropped their stocks to focus on more pressing matters. The possible tax increases for the rich and cuts to government spending made people panic after Obama’s re-election. Some stocks saw some benefit from the election today, such as hospitals and renewable energy. Because President Obama wants to pursue more clean energy, many investors dropped their big oil stocks.
One of the biggest blames for the massive and sudden drop is the European recession. Experts from the European Union say they expect even more of a decline.