Europe gets blame for post-election stock drop - 13abc.com Toledo (OH) News, Weather and Sports

Europe gets blame for post-election stock drop

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The stock market finished down more than 300 points on Wednesday and that has some wondering if the drop is connected to the re-election of President Obama. But experts say it is much more complex than that. Toledo-based Investment Advisor Alan Lancz says most of the blame goes across the Atlantic not to Washington.

Less than 24 hours after President Obama was re-elected, the market plunged 313 points, the worst one-day loss of the year. "More of it had to do with Europe than it did the re-election of President Obama," says Lancz.

Lancz runs a nationally recognized Money Management Firm in Toledo. "I've heard people say it's the worst post-election stock market loss since 1948, but it is a whole different dynamic. I do not put any credence into that except for the fiscal cliff aspect which is a concern."

Voters returned a divided government to power and left investors worrying about tax increases and spending cuts that could stall the economy unless Congress acts. In addition to that, there's a weak outlook for economic growth in Europe along with a warning that European unemployment rates could remain high for years, "A lot of things are out of the realm of what President Obama can control or change in any format."

Lancz goes on to say when you compare the United States with many other countries things aren't so bad,"The United States is in a better situation economically than many other economically powerful countries. We're showing the best progress, believe it or not, and if the right moves are made hopefully that will continue to be the case."

According to CNN the two days after President Obama was elected in 2008, the Dow plunged more than 900 points, or 10%. But during the past four years, the index has climbed almost 40%, and year to date, all three indexes are up between 6% and 13%.

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