Friday, March 6, 2009
Market falls another 80 points, Obama's investment advice served him, not investors
A couple of days ago, President Obama told investors that now would be a good time to get into the market since P/E ratios on stocks are so low.
Now here comes this bit of wisdom today from a stock expert on Marketwatch.com:
'There's no doubt that people can look at market valuations and determine that stocks are relatively inexpensive — but that doesn't mean they're going to quit going down.'
— Michael Gibbs,
Morgan Keegan & Co.
And the Dow is down 80 points today. It is going to break the once unthinkable 6500 floor. I believe it will easily fall below 5000 by the end of the year as our recession turns into a depression.
So for all of you who followed Obama's advice and invested a couple of days ago, send your monthly financial statement to him.
Perhaps he can fire his private chef and give you a little of your money back.
Now, he'll argue that he said people should buy for the long term. But he said as much because national confidence is being severely undermined by the falling stock market. So Obama was seeking some political cover.
But folks who invest now are risking everything. These are unprecedented economic and investing times. Some analysts now are talking of a Dow 4000. Citi now trades under $1. Incredible.
The President should stick to something he knows, which from his spending plans so far, is not a helluva lot.
UPDATE: Dow recovers to gain six points. Every little bit helps.