Nov. 5 (Bloomberg) -- The stock market posted its biggest plunge following a presidential election as reports on jobs and service industries stoked concern the economy will worsen even as President-elect Barack Obama tries to stimulate growth.
The market's decline came a day after the biggest presidential Election Day gain since the New York Stock Exchange first opened for trading on a voting day in 1984.
The report by ADP Employer Services showed companies cut 157,000 jobs in October, the most since November 2002 when the U.S. was emerging from a recession. The Institute for Supply Management said service industries in the U.S., which make up 90 percent of the economy, contracted by the most on record.
Judging from the sell off, it is seems like the market has not reached an equilibrium point of pricing in a recession yet. Many hope to avert a recession and still in denial stage. Based on my last few days of traveling, there will be more frightened cats come out from the bag January 2009. There will be tough months ahead - we have not heard of businesses close shop, mass lay-off, banks' NPL to shoot up yet. I do believe we are in for a rough ride soon.
1 comment:
Hi, do you think Malaysia will be badly hit, or only moderately (which is the line we get from the government)
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