Today heard a Very strange view of the financial situation in America from one of the top radio financial advsiors.
Without mentioning any names, he stated how the stock market has had its best run of any president while President Obama has been in office. The 18% overall increase during his four plus years is higher than any other president in history. In one breath he credits Obama but then he and his partner say that it’s really just a matter of luck and that Presidents have little to do with the success of the stock market during their terms in office. Which is it now – make up your minds!
Isnt’ there something to the fact that the Obama administration has artificially kept interest rates low and printed more money to stimulate the economy in the short term? Sure, it’s immediate gratification that will see some immediate growth now as overall debt goes through the roof but down the line there’s sure to be a major ‘correcton’ (as they say) or two or three.
People have short memories and may forget the numerous downturns in the market such as the dot.com burst; we’re very likely to see a similar thing happen soon, after such a long run of growth – and artificially stimulated, much like the dot.com period had been, where internet companies were riding high for awhile without producing any real capital, and then…BOOM! Lots of former millionaires.
Had Romney been in office the stock market might not have done so well in the short term but we’d probably have more dollars in our government coffers now and lower debt. It’s a GENERAL tendency for democrats to spend (tax) now and for Republicans to save for tomorrow. For sure our financial planning friend is benefitting by the more people who go into the market, so, no doubt he can take the view he does. But, it doesn’t seem like a sound one to us.
He also said that the market success primarily benefits conservatives since they have most of the money and do most of the investing. that may or may not be true but there are a lot of liberals, like Warren Buffett and the silicon Valley Techie crowd that has benefitted, so one can’t make a blanket statement on this.
Then, this finanical person went on to say that despite the success of the market we’ve had one of the lowest turnouts in spending and that ‘it’s a shame’ more people haven’t taken advantage of the upswing in the stock market. I wonder if he stopped to think that with the down economy outside of the stock market that a lot of people who might like to invest can’t afford it.
It’s amazing how easy it is for views to get so twisted, just like we see in the adminsitration. Fortunately, we’ve finally seen some die hard liberals like Chris Matthews start coming around , financial or otherwise to the other side. But to hear something like this re. the economy is scary. A financial advisor like this could destroy people. I hope a lot of people don’t follow this financial person’s advice and invest what little savings they might have only to see a big market drop in the near future.
He feels there’s no reason the stock market won’t just keep going up as it’s been formore than six years since Bush was in office; hasn’t he heard of trents and that most stock markets don’t go much longer than four or five years without a reversal, especially with an economy in the precarious position it is. Sure , homes are finally selling, too, but that’s also an inevitable trend after a long downturn. The market is certainly not likely to continue it’s long ascent forever or even for very long, as these guys would have you believe
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Top Financial Advisor: ‘We’re Lucky Obama Won the Election’