Posted on 03/05/2009 12:36:00 PM PST by Scott Martin
Investor's Business Daily has a good piece correcting President Obama on his recent musings about Wall Street: Dissing The Market
"What I am looking for," (Obama) said, "is not the day-to-day gyrations of the stock market . . . but the long term."
The stock market, he continued, "is sort of like a tracking poll in politics. It bobs up and down every day... If you spend your time worrying about that, you're probably going to get the long-term strategy wrong..."
"(W)hat you're seeing now is profit and earning ratios are starting to get to the point where buying stocks is potentially a good deal, if you have a long-term perspective on it."
IBD notes that presidents usually don't typically break down market minutia like P/E ratios. So how did the President do? Not so well.
It appears that to Obama, free-market capitalism is such a whimsical force that he doesn't hesitate to compare it's actions to the oft-misguided beliefs of America's uneducated masses. Such reckless disregard, as we see below, for the factors and the level of decision-making that goes into how the free market places prices on everything is downright shocking. It reveals to me the inner mind of a man who at his core depth does not understand capitalism. This may be one of the many downfalls of spending ones formative years surrounded by socialists and communists, as Obama admittedly did.
If the market follows through on its strong action Wednesday {me: it didn't}, his call — that stocks are a "good deal" — may be one for the record books: He will have nailed the bottom, and we'll be the first to congratulate — and thank — him.
That said, we take issue with...
(Excerpt) Read more at examiner.com ...
Apparently the Anointed One is so ignorant of the stock market he thinks P/E ration stands for profit and earnings rather than price/earnings.
Scary, very scary.
Everything is a foreign concept to this teleprompter-reader. He is just mouthing what soros told him to say. the new fuhrer doesn't know what it means any more than a parrot understands a song it is singing.
He was a community organizer, wowing the elderly Black ladies at organizing meetings. He didn’t run anything, and the slum he “organized” is still a slum, dependent on money from our paychecks to keep the denizens in food stamps.
REF: Capitalism is such a foreign concept to this president, despite his talk of P/E ratios and the like.
Wrong, he talked about PROFIT to EARNINGS ratios... I heard him clearly. He is a stupid bastard.
Yeah Mr President, but, when the market bobs down, and down, and down to the tune of losing over 50% of its value, and you see that as normal market gyrations, it is totally obvious that you don't have a clue!!!!!!!
We will eventually be very, very sorry that this man was elected POTUS.....
From reply #4 to http://www.freerepublic.com/focus/news/2199867/posts?page=4
Wednesday, March 26, 2008
Obamas Are Strangers to the Investor Class
Barack Obama released his tax returns since 2000 last night, and we learned something interesting about Barack and Michelle. They have next to no stake in the investor class.
Here’s what they reported in qualified dividends per year, and the implied taxable portfolio holdings from them (assuming a 3% dividend yield):
2006: $1188 ($39,204 in implied holdings with an AGI of $983,826)
2005: $2754 ($90,882 in implied holdings with an AGI of $1.65 million)
2004: $0 ($0)
2003: $0 ($0)
2002: $0 ($0)
2001: $0 ($0)
Surely, you might protest, Obama simply held securites that issued no dividends until 2005 (unlikely), or he held all his investments in IRAs, 401(k)s, annuities, etc. (more likely). That’s belied by two observations:
1. Michelle Obama earned a quite lucrative annual self-employment contract from the University of Chicago Hospital System (in some years, approaching $1 million). Yet, Mrs. Obama didn’t appear to have a self-employed 401(k) plan or a SEP-IRA to make retirement contributions from. This implies that the Obamas are not exactly the best tax-deferred investors in the world.
2. In 2000, the Obamas cashed out $6260 from either a DB pension or a 401(k) plan. This is a sure sign of a household that does not build and accumulate a nest egg for their future.
Why is Barack Obama so hell-bent on pursuing policies that would wreck America’s retirement savings? Because, by and large, he doesn’t have any skin in the game.
(About ASA: “The American Shareholders Association represents the 50% of households and 70% of voters who own shares of stocks, bonds, mutual funds, and ETFs. These shareholders are the rank and file of the “new investor class.” They hold their investments in 401(k) plans, IRAs, taxable brokerage accounts, and other vehicles.What unites all these investors is a desire to see public policies that encourage growth and discourage economic contraction. ASA was founded to represent shareholders in their quest to grow the economy, reward risk, and increase the value of everyone’s nest egg.)”
“Wrong, he talked about PROFIT to EARNINGS ratios... I heard him clearly. He is a stupid bastard.”
Even better; nice catch
There’s a decent chance that having the president of the United States demonstrate such breathtaking ignorance about finance and investing like he did the other day will be more destructive to the U.S. economy than simultaneous bankruptcy filings by every S&P 500 company.
Well, it’s currently gyrating below 6600...
profit and earning ratios”
what a genius
Mr Obama makes it perfectly clear his stance on Wall Street and investments...he’s completely ignorant, doesn’t give a flip, and doesn’t give one thin darn about those of us who have lost 50% of our retirement (and climbing.) He means to bring the free enterprise system and the working class howling to its knees to reconfigure a communist new America...new, changed, and improved.
--is that they're a 'risky scheme'. He ridiculed stocks on the campaign trail drawing howls by saying "McCain wants to put your social Security in what, the stock market!!!"
Now he's saying that stocks are a "good deal" Does this mean we should move social security there? No. Is he putting his own money in stocks? Hell no.
This is inconceivable! Where did all the money go?!?!
“(W)hat you’re seeing now is profit and earning ratios are starting to get to the point where buying stocks is potentially a good deal,
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Obama doesn’t know that P/E refers to price to earnings ratio, he thinks it is profit to earnings ratio. He has no clue that earnings and profits are the same thing.
Obama is as knowledgeable about the stock market as he is about brain surgery!
Obama and his appointments are clueless. They are too busy focusing on Rush Limbaugh.
“We will eventually be very, very sorry that this man was elected POTUS.....”
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Damn, I could have sworn we were already!
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