U.S. presidents usually don’t try to give investing advice on the stock market. But not this President. President Obama opted today to play financial adviser to America and the World.
“What you’re now seeing is 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,” Obama said this in public in the White House while meeting with British Prime Minister Gordon Brown. — Pres. Obama 3/3/09
So just where and when did Pres. Obama get his financial consulting license? As President he needs to be very careful about what he says in public regarding the financial markets. These personal tips of guidance are just one more example of his naivety and rookie status on holding the highest executive office in the country. There is no doubt that the current floundering on Capital Hill and at the White House is now at least partly responsible for the stock market’s dive this year. The direct correlations of the recent severe down days cannot be attributed to the previous administration, but instead to the lack of clarity coming out of Washington. It may be true Obama has inherited the seeds and foundation of the current banking crisis and over extended credit problems spanning back over the last 16 years and two administrations, but the meltdown of the last 30 days is attributable to decisions and speeches he and his administration have made on his watch since taking office in January.
The Dow Jones stock index and S&P both dived last week as well as Monday and now Tuesday of this week to their lowest levels in 12 years which has sparked new rounds of concern and selling reflecting a sentiment with all investors, big and small, that the geniuses we have elected in Washington are flying by the seat of their pants and are NOT inspiring confidence in the financial / business investment communities.
President Obama needs to begin to learn that it is naive to think he can talk openly about complex fiscal matters in his usual condescending fashion without sometimes creating un-intended consequences.