Obama says time to buy stocks

Quote from Cutten:

Well, I didn't quite conclude it from his statement. It was more that I suddenly realised exactly what was going on in the minds of all the baby boomber Obama supporters. You know, the wishy washy middle of the road middle class professionals who hated Bush but aren't die hard Dems. Obama's pronouncement suddenly made me realize that whole swathes of American *really believe* that you always buy a market down 50+%, and you'll be ok.

To which the only possible trader response is: ahahahahaha...
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Again, I didn't think his comment, and that's all it was -- a comment, was directed at traders and market timers. "Long term perspective," remember? That automatically excludes those either in or approaching retirement. Perhaps he should have given a Powerpoint presentation on TA? And if memory serves, he didn't say anything about "automatically" buying at a 50% drop. Rather, I think he said something about P/E valuations. So, we're talking about E as well as P, which doesn't suggest mindless buying across the board.
 
Quote from Thunderdog:

...Perhaps he should have given a Powerpoint presentation on TA? ...
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Maybe he should have given a Powerpoint presentation on "Profits to Earnings ratios".

:D
 
Quote from Cutten:

I just find it remarkable that a politician thinks it is appropriate to comment on equity valuations. Any time someone says market X is cheap, or expensive, they are basically saying that the collective opinion of the world's richest investors is seriously wrong. Given the number of smart professional investors who underperform the market, I would expect only someone with a lengthy (min 5 years) superior proven track record to feel that they are qualified and proven enough to say a market is mispriced.
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The other explanation is that he doesn't care whether his advice is informed or not.

If he gets some marginal buying from his speech, then maybe the market recovers, and he can take political credit for engineering a recovery.

If the market tanks, burning all those who bought on his say so, then he can just walk away and say, "well I tried my best but you know, markets are unpredictable."

It's a political call option, and the possible burning of citizenry wealth as a consequence is but inconsequential collateral damage.

Liberals and socialists don't have any sense of fiduciary duty.
 
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