The US markets were very strong all the way to the US election. It seemed obvious that the Fed and other authorities played Obama’s reelection game, as we know that fundamentally the US economy is weak. However the freefall of the markets that we have witnessed since the election day is very significant. I would say the way they played this out was … somehow hilarious.
Though this scenario played out this way and many investors thought about it, I am not sure how many of them sold their holdings or even went short at the right time. It would have been one of the ways to profit from the incompetence of politicians who do some obvious things they don’t admit. In my opinion inflating a market through any kind of intervention to have somebody reelected or to cover a debt problem is not a healthy way to keep things going. Stock market prices will naturally go back to reality sooner or later to reflect fundamental values.