My decision to not focus on what is yet again another Obama appearance on TV along with UK Prime Minister Gordon Brown, which in my record is his hundredth since he officially became the president just about a month and a half ago, luckily (or not) caused me to miss his “Buy” recommendation on stocks. In his exact words,
“On the other hand, 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.”
Listening to him speak those words not only sent shivers down my spine, it also made me roll my eyes because he now seems to be stepping into the world of investments. Not only that he did not sound convincing making recommendations and talking about earnings multiple, it just didn’t look right. He further added that following the stock market is like following a political poll, that if you focus on the day-to-day bobs, you’re more likely to get the policies wrong. Point one, the market is not simply going up and down; it is still diving. Point two, you are SUPPOSED to look at the movements because it guides you in your buying/selling activities. The given volatility of the past couple of months is precisely telling an investor to pay very close attention at those “bobs up and down”; that’s how he makes money!
He’s already on his way to taking over America’s health care system, but it seems inadequate. Nevertheless, he needs to back off of the investing world lest he causes a sell-off instead of a rally.
Obama is the US’ commander-in-chief, not her chief equity strategist.