Tuesday, March 03, 2009

The Obama Crash

Hmm, according to this the Dow has gone from 9500 to 7000 since Obama was elected. Now this is one sad looking chart:

The worst part is that Obama isn't concerned with the 2500 point swoon since he was elected.

“What I’m looking at is not the day-to-day gyrations of the stock market, but the long-term ability for the United States and the entire world economy to regain its footing,” Mr. Obama said. “And, you know, the stock market is sort of like a tracking poll in politics.”

Hopefully he is looking at the month to month gyrations because that is what is killing 401Ks. We also get this little tidbit of investing advice from the Obama as well:

“Profit and earning ratios are starting to get to the point where buying stocks is a potentially good deal,” Mr. Obama said, “if you’ve got a long-term perspective on it.”

I think he meant PRICE to earning ratios and it was (hopefully) just a slip of the tongue. He is right that lots of stocks are once-in-a-lifetime cheap. I'm just afraid that if you go long the wrong thing he will just turn around and release a budget that will kill your healthcare stocks. I'm pretty sure that his energy bill will end up killing oil companies and drillers (my money is on a ban on drilling in the Gulf of Mexico or other nonsense as a sop to global warming nuts.) I think the prudent advice is to Short Obama.

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