Comments on: Does Obama’s Success Depend on the Dow?

By: Jim

Jim — Fri, 20 Mar 2009 17:28:11 +0000

The stock market tends to be a leading indicator of where the economy is headed and overall economic sentiment. Obama certainly started out scaring the heck out of the investor class in this country and helped drive stock prices down. No question about it. His teleprompter had trouble switching out of campaign mode and into govern mode, but has slowly started to change from doom and gloom to optimism. There’s occasional evidence this is happening, followed by more backsliding. No one who lived through the 1970’s wants to head back there again, but the resemblances are eerie.

All presidents are judged by the economy, like it not. And quite frankly the blame game is growing old. It’s too early to call Obama a disaster, but he’s not off to good start, and he hasn’t even enacted some of his stupider ideas yet. I feel sorry for the young people in this country; they are the ones getting screwed and don’t even realize it.

By: Stock Market Rallies Above 7,000 - Money & Investing - Banks.com

Stock Market Rallies Above 7,000 - Money & Investing - Banks.com — Thu, 12 Mar 2009 16:37:16 +0000

[...] sadder: We’ve started following the mainstream media in the thought that the Dow is an indicator of economic health. Even though unemployment, GDP, inflation and a few other measures are better overall indicators of [...]

By: Miranda Marquit

Miranda Marquit — Mon, 09 Mar 2009 19:28:49 +0000

Thanks for weighing in Oblivious, Ace and Manshu! I think you all make excellent points. There are a number of measures more “in tune” with the economy than the Dow. Additionally, it is hard to feel bad for Wall Street when most of the $11 trillion set aside for economic stimulus is going to Wall Street (waaaaay more than $2 trillion +). And, I think there is something in the statement that maybe the market just doesn’t like Geithner’s vague remarks.

By: Manshu

Manshu — Sun, 08 Mar 2009 19:10:20 +0000

I think the street is reacting more to Sec. Geithner than it is to Obama. Markets anywhere in the world hate uncertainty and vagueness, which is what we are getting from Geithner again and again. I don’t think it is so much to do with Obama as it is to do with Geithner. Of course, people at Fox don’t want to say that.

By: Ace

Ace — Sun, 08 Mar 2009 07:38:34 +0000

Wall Street got 2 trillion+ dollars, they should be jumping for joy. The Dow is a pretty weak indicator and frankly, it had to correct itself anyway. Maybe it was all the loss of finance jobs that did it.

By: ObliviousInvestor

ObliviousInvestor — Sun, 08 Mar 2009 00:59:13 +0000

“Even as a measure of the economy, I’m not sure how much credence we should lend the Dow.”

Agreed. As compared to things like unemployment, GDP, and inflation, stock market indexes (especially the Dow) are pretty poor measures of economic well-being.

Instead, it seems to me that stock indexes measure how the investing public feels about our economic well-being.