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Why Stocks May Keep Falling: ‘The Sugar High Will End’

Why Stocks May Keep Falling: ‘The Sugar High Will End’
Published: Wednesday, 7 Nov 2012 | 2:40 PM ET
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By: Jeff Cox Senior Writer

Investors cast their own vote on the presidential race Wednesday, and the result was a landslide rout that could have lasting repercussions beyond Tuesday’s results.

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A trader holds his head in his hand on the floor of the New York Stock Exchange in New York City

A day after President Barack Obama stormed past Republican challenger Mitt Romney, the stock market sent a clear message: There’s still a lot more to do than win a campaign.

Market experts said a confluence of factors are poised to make for a difficult environment that could last well into 2013, which traditionally would be a slow year outside of all the present headwinds.

Theories abounded on why the market tumbled. They ranged from worries over the “fiscal cliff” of tax increases and spending cuts, as well as troubles in Europe, a slowdown in the U.S. and questions over the efficiency and effects of Federal Reserve policy.

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