Tales from the Trail

Obama as stockbroker in chief?

March 3, 2009

President Barack Obama is wearing many hats these days — commander in chief, head of state, father — so what about stock broker?
 
The new president, who has spent the first weeks of his administration working on proposals to boost the economy, lifted eyebrows and, at least briefly, stocks on Tuesday when he suggested that battered shares were a potentially a good investment at low prices they are currently touching.
OBAMA-BRITAIN/ 
Speaking in the Oval Office with visiting British Prime Minister Gordon Brown, Obama said it was natural that markets would be suffering from bad economic news.
 
But then he weighed in with this observation:
 
“What you’re now seeing is — 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.”
 
Sound like cheerleading at all?
 
Stocks inched upward in response to his words, but his spokesman, Robert Gibbs, played down the comments later, saying they were in line with Obama’s previous statements on the economy.
 
Tell us what you think. Is the president encouraging Americans to buy stocks? And is that good advice?
 
For more Reuters political news, click here.

Photo credit: Reuters/Jason Reed (Obama and Brown at the White House)

Comments
7 comments so far | RSS Comments RSS

No thanks Mr President; Chinese stocks only for me. No leadership here in the U.S. yet for any type of a recovery. BTW, I won’t touch your Treasury Notes or Bonds either.

Posted by lionhead | Report as abusive
 

Heil my leader, the savior of our country. Should we call him King Barack I or the last. What does he know about economics? Oh, I am sorry, he is well educated and very intelligent he can do it, yes he can. To all, let us follow the Pied Piper leader straight to the river, I think he is very experienced and well qualified for the job. The market and economy shows it quite clearly.

Posted by Ragnar | Report as abusive
 

Obama as Stockbroker-in-chief?

One word in answer: SELL!!!!!

 

That “tip” could be valid if we were facing a normal market situation – for example, 9/11, when the instability had nothing to do with economic issues, but with uncertainty and fear about terrorism.

Now it’s different: banks are collapsing, economic concepts are being revised, and the root of the crisis IS very deep.

Briefly: he couldn’t know – unfortunately.

Posted by Madness | Report as abusive
 

It’s always the proper time to buy stocks if we subscribe to dollar cost averaging. If you aren’t buying stocks are you trying to time the markets? Every time Washington even whispers there’s a gut reaction but let those sage leaders mention even the existence of a stock market and you cry separation of church (investolics) and state!! Is it really possible that the democratic leader of the nation is uneducated and uninformed about investing? Now is the time to BUY!

Posted by Strider | Report as abusive
 

I LOST A LOT SINCE OCT. 2007, HOWEVER SINCE NOV. 2008
MY LOST HAS TRIPLED. FALLING AS IN DOMINO’S, I REALLY THOUGHT WITH THE MESSIAH COMING IN THAT THE MARKETS WOULD AT LEAST HOLD STEADY , NOT DROP LIKE IT HAS. SO I GOT OUT LAST WEEK AND SAVED SOME BUT DEFINITELY DOWN FIFTY PERCENT
AND I FEEL THAT WE WILL NEVER RECOVER FOR MANY MANY YEARS AND THAT IS IF WE DON’T GO INTO SOCIALISM /AND OR COMMUNISM
IT ALL GOES BACK TO CLINTON WITH HIS IDEA OF EVERY ONE GETS A HOUSE WHETHER THEY CAN PAY FOR IT OR NOT, THEN STEPS IN GREENSPAN WITH HIS VERY LOW INTEREST RATES AND BARNEY, AND DODD HEADING THE WHOLE SHOW AT FRED AND FANNIE

Posted by dom27 | Report as abusive
 

Our economy runs on trust. Trust, that wise behavior is rewarded and unwise and crooked behavior is punished. No one is being punished and all the crooks who got us into this mess are being rewarded. That is why the economy will continue to tank. Everything is the opposite of what it should be and we’ve gone down the rabbit hole. I wouldn’t invest in that economy until I see heads roll.

Posted by Maria | Report as abusive
 

Post Your Comment

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/