Sponsored Link: This "Modern Marvel" Could Make Early Investors Rich...

Obama’s Market Effect

From the initial looks of things, the markets are opening lower after President Obama’s speech. You can probably already hear your anti-Obama colleagues declaring things like “the market has no faith in the president, see it’s dropped.”

And they couldn’t be more incorrect.

Yesterday, the indexes took a 4% bounce – a short respite from the prior week’s negativity. Today we are simply seeing some profit taking, plain and simple. If you’re a mutual fund or professional money manager, you are going to want to take your profits when they come, and stay as liquid as possible.

As of this writing the S&P 500 (.INX) is down over 2%. It also tells us that our two-week-long slid isn’t over. Just punctuated by some marginally positive days.

There are many on the far right and far left that believe in conspiracies of stock market control. But the fact of the matter is that it’s not that simple. In order to change the movement of the market, you really need to affect the mass psychology of the participants – the millions upon millions of people both in the United States and around the world.

A speech rarely does that. And if it does, like cases with Federal Reserve Chairmen, the effects don’t last long. In our current market rout, it’s best to blame the macro-economy instead of blaming it on a handful of people.

Because if a handful of people could change the market, those individuals would be running it straight up. Neither Obama, nor anyone else has that kind of power. Not even Warren Buffet seems to be able to sway Wall Street.

Related Investment U Articles:

Sign Up now and receive this Free report:

Collect 122% in the Next 12 Months From Gold's Surge.




The Single Best Investment for 2009

Forget another stimulus package. Or retreating into "safe-havens" like cash and gold. All you need in 2009 is a small exposure to the "secret" White Cap Index.

It's up as much as 171% straight through Wall Street's meltdown. And one of the latest stocks to be added - an Internet-related venture capital company - is up over 100% since its inclusion into the Index.

Just weeks from now, we'll add another White Cap stock to this market-trouncing index. To get a sneak peek, click here for full details.

Share Investment U:
  • email
  • Print
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Google Bookmarks
  • Propeller
  • StumbleUpon
  • Technorati
  • Yahoo! Buzz
  • Reddit
  • NewsVine
  • SphereIt
  • Twitter

Comments

**By submitting your comment you agree to adhere to our Comment Policy and Privacy Policy.

Check out our selection of daily Investment Research:

IU Blackboard IU Archives




We Respect Your Privacy



What is Investment U?

Since 1999, Investment U has provided impartial, no-nonsense investment advice on how to build long-lasting wealth.



Recent Articles

 

Search Investment U


 

Platinum Services

Oxford Club
The Oxford Club
is an exclusive, global network of investors, who collectively participate in the pursuit of prosperity and wealth. The Club is renowned for its market-beating, tried-and-true investment principles.

White Cap The White Cap Report exclusively identifies companies, White Caps, which - by being among the earliest to gain traction - have secured dominant positions within untapped, billion-dollar markets.

XPR With an elite trading team at the helm, the Xcelerated Profits Report shows any investor how to "invest like a pro," using high-level, yet easy-to-execute strategies that "xcelerate" profits while minimizing risk.




What Readers Are Saying...

"Always enjoy what you have to say, and learn something new (and useful) almost every time. Thanks again for your outstanding work." Jeff K.

"I just want to say a quick thank you to Alexander Green for not only his sage advise, but his reassuring words of encouragement that we all need right now." Bryan W.