President Obama just declared at a press conference:
“Buying stocks is a good deal if you have a long term perspective.”
How does that statement help anyone? Does his wisdom apply to those people who have bought and held for 13 years who are now underwater? I am not giving slack either. Bush saying “go shopping” was dumb and Obama’s statement is dumb too. From Bloomberg:
March 3 (Bloomberg) — U.S. President Barack Obama said falling stock prices may mean bargains for investors with a “long-term perspective.” Obama, who is seeking to boost public confidence in his strategy to revive the economy, noted that major U.S. stock indexes have continued to fall this year as the recession in the U.S. deepens. “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,” Obama said at the White House today where he was meeting with British Prime Minister Gordon Brown on battling the effects of a global recession. He compared the daily market fluctuations to a tracking poll in politics and said he wouldn’t be adjusting his policies just to meet daily market expectations. “If you spend all your time worrying about that, then you’re probably going to get the long-term strategy wrong,” he said.
Is this the first President to ever attempt to offer specific stock trading strategy?