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What is Causing the Post-Election Market Selloff?

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    BGC Partners CEO Howard Lutnick on the election’s impact on the markets.

  • Duration 3:02
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Even if the -- experiences its largest drop in a year today the market's still -- look at significant gains under President Obama the most stunning overall.

The NASDAQ up a staggering.

96%.

Over the past four years but.

Will these gains hold especially when we have a bit of a tinge of darkness today joining me now on -- Fox Business exclusive.

Howard what that Cantor Fitzgerald in PGC partners chairman and CEO first with your reaction.

To last night's election.

Well.

Europe where you can bet on these kind of things have Barack Obama three to one.

Before the debate that we had this big debate which of course get the media also excited -- even money in America guess what it was there three to one.

Three to one -- three to one so old real money was it three to one and of course.

You know he -- big so I don't think real money ever thought.

There was a contact let's explain how that works you know people put money behind a -- so whether they are for that candidate doesn't matter.

They believed.

Who would win out in trade is something that that people bet on here there was a moment where Mitt Romney moved higher but then.

That was nonsense that -- that was just nonsense all real money in Europe and you can bet on these kind of things in Europe.

All real money in Europe had three to one means -- of that three dollars.

And Mitt Romney.

You know -- amazing you if you -- 300 -- -- would not so no one really in Europe thought no real money.

But Mitt Romney was gonna win and so it shouldn't surprise.

Anyone want it shouldn't really surprise anyway.

Get people are so -- -- been people parading -- all of the networks say.

Romney's gonna win in a route and then of course it doesn't happen fact is the market reaction is due to what in your opinion today.

That it's that that Republicans did not pick up any grants.

Right so -- do with thinking was -- Obama I mean it's tough to take out incumbent I mean it is tough to think that the incumbent but you would have thought.

The Republicans would have made program may be in the senate.

Right and therefore it would be more balanced instead it's the other way around so everyone -- taxes are gonna go up.

The dividend taxes gonna go up you know it is gonna get its fiscal -- but -- the probability of taxes going higher.

And therefore stocks go home.

Ask you about that because one of your company's BGC has a terrific dividend a lot of people bought into the stock because it's got a 10% plus dividends you really getting paid double BTC's doctor.

What if that dividend tax goes from 15% to 30% -- -- worry somebody like you.

Sure I mean it it -- which is bad for people will stocks of that who pay dividends that this.

The tax goes up in -- fortunately DGC.

Because of our structure our -- a large percentage of it is is not taxed at all because of our structures were able to pay a dividend out and people don't have to pay even the 15% tax that makes it very very attractive but for most stocks.

But it's is bad for stocks right and we increased capital gains tax is just dead -- stocks and so you ladies things out there.

You know capital raising just gets more expensive stock prices.

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