March 3, 2009 4:18PM
Mr. Obama’s Stock Recommendations
By Ray Hennessey
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"Profit and earning ratios are starting to get to the point where buying stocks is a potentially good deal if you've got a long-term perspective on it."
Sage advice from a Wall Street market strategist?
Hardly.
That was direct from the mouth of President Barack Obama.
Traditionally, presidents don't comment on the markets. They know it's a path that usually leads to no good. Presidents are not stock pickers. And their words can move markets. Indeed, stocks recovered somewhat from a midday slump after Mr. Obama made the comment, in a media availability with British Prime Minister Gordon Brown.
Yet, given the market selloff over the past several months, might it not be a good idea to cheerlead stocks? Don't extraordinary times call for throwing out the rulebook?
Here's why the answer is no. The President needs to stay out of the markets for the markets to operate efficiently. Even at a time when it seems the government is as inolved in stocks as it has ever been, it's still a bad idea for the head of the nation to guide people in how to save or invest their money. People respect the office, and follow the advice, and the president should not have the responsibility to guide private citizens' nest eggs. It is beneath the Office of the President.
Plus, he could well be wrong.
Look at it this way: There were plenty of folks who pull down paychecks who called the bottom in the fall. And in December. And in January. And now.
In fact, looking at P/E ratios to guide overall market valuation is more of an art than a science. Some see an oversold market now. Others still see more selling yet to come. And market history has shown us that we can go through long periods where stocks barely move at all.
One last point: For all his appeal, charm, charisma and success, President Obama doesn't do the stock market for a living. If he did, he would be as hesitant as everyone else to recommend someone increase their stock allocations.
After all, many of those who offered that advice over the past year are now out of jobs.
Now that's a problem worthy of the president's time and attention.
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The market and wallstreet do not have a place in the bama’s world. He’s not minding anything he does not believe in. His indifference may never change while he is in office.
Get the change and hope you where expecting?
In times of crisis, the more stupid the leaders, the worse the effects of the crisis will be. Yet there may be a way to mitigate the crisis: the current leaders need to be forced out of office as soon as possible and replaced by responsible ones who truly represent the voters.
Mr. President:
I am a Republican that has stuck his neck out for you. I have spoken out loud in supporting your efforts to save our nations. I have condemned all those that have stated for you to fail. They do not realize that if you fail, our nation fails. Once the pillar of strength and respect, our nation will be owned by those that loaned us money. If you fail, people will fail. No jobs. No living wage. No families.
Mr. President, I ask of you to please cut the strings. Nancy Pelosi and Harry Reid are the puppet masters and they are pulling all the strings and you are the puppet. During your campaign you stated that you would go line by line and get rid of spending that is useless, yet you have allowed the puppet masters to waste valuable money on items and issues that have nothing to do with helping the nation and the people. If you were going to spent all of that money, instead of giving it to the puppet masters and their friends, you should have put your foot down and told them that the trillions of dollars would go directly to the people. You could have easily gave $40,000.00 to married tax paying people, and $20,000.00 to single tax paying people, making under $250,000.00
What is a “profit and earnings” ratio?
Mr. Obama cannot be held responsible for his comments. At the time, he was not standing in front of a teleprompter with the appropriate sound-bite. With no knowledge of economics, fiscal policy, and business practices… he just says the first thing that pops into his mind.
Not to worry, the spin doctors will have it all erased from all the media outlets and they can then deny any statement was ever made.
It’s good to be KING.
What is a “profit and earnings ratio”?
In regards to referring to President Obama as Barak Obama. Reporters frequently addressed former President Bush as Mr. Bush long before the completion of his term.
Barack Obama in the debates addressed Senator John McCain as John while John McCain addressed Barack as Senator Obama. Why the double standard?
Back to the issue at hand. How is recommending stock purchases appropriate at this time? Who really benefits when companies are failing in significant numbers. Wasn’t speculation what put us in this situation anyhow? Just a thought.
How about a little common sense here.
The only fact I saw is “OBAMA SPEAKS, MARKET DROPS!!!”
I want President Obama to succeed. But turning his head on the current multi billion dollar bill full of earmarks is disheartening. If you want to watch the stodk market collaspe, watch if this President foolishly turns the labor unions free to infiltrate and control our largest industries. The auto industry should be a reality check. Capitalism embraces innovation and entrepreneurship not labor unions. Unions thrive in a socialistic environment, but last time I looked we were still free market capitalists.
“…potentially a good deal…” Does this President own any stock? Is he invested in the markets? Most of our Presidents have been rooted in Capitalism and realize that unless our markets are thriving, the economy is dying. Regulating the economy is a sign he knows little about our free markets. This President is about CONTROL rather than free economic markets – he is a socialist rather than a capitalist.
This is not the military and there is no obligation under the Constitution to use titles. Now, if you ever seen behind the scenes footage of Mr. Obama you will find one of the most disinterested people you will every come to know outside and inside his field. I remember watching SENATOR Obama during the TARP meetings in Washington sitting in front of an empty desk by himself for God knows how long (10 watching the pot boil minutes). I thought: How can anyone not possibly be bored with so many interesting things in govt, law, and finance happening around him within shouting distance? If it weren’t for the occasional head nod -like a tennis match reeling in his mind we’d think he was totally without consciousness. We work hard for knowledge. We work hard and put our name to our works, for the sake of our family and our “village”. We know the price of laziness is disaster and we risk not encroaching the Peter Principle. As the days unfold we are seeing the affects of perpetual disinterest from a perpetual campaigner. When given a rare opportunity we see what propaganda omits. It is those times that in our hearts that a person EARNS or DISQUALIFIES respect.
FYI, Peter T:
From the AP stylebook website:
“Starting Thursday, Nov. 13, AP will use first and last names with the title of U.S. president or president-elect on first reference. Same holds for presidents of other nations.”
Also in the stylebook Q & A:
“…Presidents George W. Bush and Jimmy Carter on first reference, Bush and Carter on subsequent references.”
AP cites headlines as the exception. It appears that Fox is in compliance with standard usage.
Protocol, Pete…
Excuse me, Mr. President, that’s Price/Earnings ratio…
Geez, are we in trouble.
Respect? You Liberals never showed President Bush any respect. But that’s typical from your type. It’s all fair and good until it’s coming at you then they that are hurling the insults are “mean spirited” or “bigoted” or whatever. If I had a nickle for every time a talking head in any segment of the media referred to President Bush as “Bush” I’d be living on my private island watching the likes of you dragging this country to a slow, painful death. Better grow some thick skin because “you aint’ seen nuthin yet” pal.
Are you kidding me. If I had a nickle for every time a talking head journalist called President Bush “Bush” in the media I wouldn’t be involved in this recession. You liberals are going to have to grow some thick skin. If you can’t take it you shouldn’t dish it out.
Obama is in the midst of destroying the stock market by raising taxes on businesses, venture capital investors, and those who still might have some disposable income to invest right now. He’s going industry by industry, blowing them up. Why would I follow this tool’s advice. As an accommodation to Peter T, I’ll refer to him as President Tool.
It’s obvious that Obama knows nothing and can’t help the markets. He only hurts it, correction, kills it.
He should do the honorable thing and just resign now to save everyone what’s left of their retirement. We can’t take much more of this abuse.
He should stick to what he knows best—Illinois dirty politics.
Lord Obama needed a stock rally to show support for his policies. Never underestimate the power of the Dark Side.
Show some respect.
I happen to agree with your opinions, but referring to our president as Mr.Obama in your title is inappropriate and it cheapens your argument.
And no, adressing the president by the proper title in your opening statement does not make up for the disrespect shown in the title.
It is never disrespectful to refer to a man as Mr. It may be less appropriate, as you clearly pointed out, but it is never disrespectful.
Wow Peter T. I’m always amazed at what some people will pick up on as being important. Mr. Obama instead of President Obama. Wow again. We have really advanced an arguement now that we got that settled. This paranoia out there that President Obama is being disrespected is a window into the over-sensitivity indoctrination that so many people have grown up with. Sorry, gotta go. I’m late for the polish joke book burning session at my local library. My God!
Actually, I assume it was lack of respect, rather than disrespect. Since Mr. Obama has shown absolutely no leadership skills to this point, I wouldn’t address him as ‘President’ either. Actions, not titles, garner respect. That’s why Bush will always be ‘that stupid little man’.
Mr. Obama’s Stock Recommendations!
I don’t think so! I could not believe him when he was running for president and I can not believe him now. He was feeling people with a lot of B/S and most of the votes was taken in and are being taken on a ride and the ride is not good. All elected officials need to go home and we need to elect people that want to work for Americans and tax payers. The rest need to go back to their countries.
Obama is not a stock market sage, and never will be. He needs to attend to governing rather than telling everyone what to do.