Dow Jones Chart
A quick glance at how the stock market has performed over the last year tells us a lot about what the market thinks of Barack Obama.
Once it became increasingly clear that Barack Obama was going to become the president, the stock market tanked. Sure, some might blame the financial crisis for this performance; however, the stock market is very much an indicator of psychological expectations as much as it is any measurement of actual market values for companies. Compare the chart above to the next chart:
Notic the correlation
Here we see that the approval rating of Obama plummets in a way that correlates with the rising values of the stock market. It is arguable that dramatic, recent rise in the market is attributable to the fact that Obama’s health care plan is falling apart. Cap and Trade has also been shelved. I know that to prove this correlation is impossible, but it seems to be apparent that the investor class (those responsible for creating jobs and economic growth) are pleased that at least two of Obama’s major issues are failing to materialize. On another note, notice how the market reacted during the time that the stimulus package was being shoved down our throats. Despite all of the logical fallacies inherent in this comparison, I think we can safely assume that Obama is no friend of the investor class – notice I said investor class not the speculative trading class. These people don’t have friends, it is against their business model.
In an effort to expand the ranks of a group that seems to be opposed to Obama, I am recommending that my readers check out Anticitrade. This is a site that my friend started that performs valuation algorithms on various stock indexes and lets you know what stocks are undervalued. My first trade with an anticitrade pick yielded a 40% gain in less than two months, and the proceeds from the trade will finance my trip to San Diego to see Pearl Jam. I was hoping to pay with an IOU since the concert is in California, but ticketmaster wanted real money. Thanks anticitrade!
Obama has done little to please the markets. Indeed, his policies have probably prolonged the recession. Liberals will never admit to this but isn’t it interesting how when the market was up and things were going well nobody was complaining but once things turned ugly it was time to blame the rich!
However, we can’t simply assume that it is just rich people that have something to gain or lose when the markets collapse. The retirement of the whole Baby Boom generation depends largely on continual growth in the financial markets. Obama thinks he has a problem with 37 million uninsured citizens. Wait until you have that many unretired citizens.
This is a good point. I wonder how the Baby Boomers will feel about Obama when 2012 rolls around. Do you think they will view the collapse of 2008/2009 as something caused by the Republicans or prolonged by the Democrats? I guess time will come.
I think too many people took too much false confidence from the performance of their 401Ks which were doubling every year at least for a while. They were probably doubling because so many new people were pouring their money into them for the first time.