PRESIDENT Obama!! Let’s relish in that moment. President Obama….
Okay, the celebration is over now. His address was somber. Very realistic. And there is a reason why. We have a long, tough road to rebuild confidence in the future of America’s economy.
The proof was in the Dow today. Right now, the Dow is inching towards 8000 down 215 points. This may partly be due to the somberness of the speech. Because why would President Obama take the one occasion when everyone around the world is watching to talk about the troubles that lie ahead if we weren’t in a dire period in history?
This is why I’m continuing to look at bonds for money that’s needed within 3-5 years. Another option may be short-term Foreign Exchange trading. But the stock market–the market where equity can be given and taken away from public corporations by investors–is iffy in the short term (albeit one of the best inflation defenses in the long term).
As President Obama said, the situation and the tools are new. So the next 6 months at minimum for a person in finance are synonymous to walking through a dark room with a blindfold. Although, if you’re experienced in trading during uncertain times, that experience is your guide dog or walking stick…I think you get my point.
But even though there is uncertainty, no doubt he’s the perfect leader for today. He’s inspiring, and the majority of Americans have confidence in his ability to lead. But is there enough confidence to encourage Americans to put their hard-earned dollars into our economy via spending and investing, and not in their mattresses and money markets?
I’ll tell you this much, however. I think Bush is a great guy. He mouthed “You’ll have the time of your life, I promise you” to Michelle Obama as he got on his helicopter. He’s genuine, and no doubt I’d enjoy having a beer with him.
But his administration made bad choices, and governed with fear. So if there’s ever a way to boost American’s confidence that change has arrived, showing the picture below may be the way:
President Obama, it’s ok to smile today. It may even help the Dow.
Want to understand the stock, bond and options markets in a unique and fun way? Please buy my book Three Little Securities!
