Home » Opinion » Opinion: Will Obama Ruin Our Economy?

Opinion: Will Obama Ruin Our Economy?

dowjonesfeb2013It’s all the talk in the stock market. Analysts have their opinion. Some love the guy, and other want to take the law on in an unruly manner. The big question in Wall Street, “Is Obama is good for our country”. The valid arument can be make from any standpoint. If we seek an answer we should analyze objectively.

Obama shamelessly raised taxes for the average American. The reaction of the public did view the President in a positive light, and his speeches are less impressing. People have less money, therefore spend less. Because we are a consumer society, the very health of the economy relies of people spending. Thus creating  jobs, that create money, so we can spend more money.  A happy upward spiral of consumerism works in theory. That is what the conservatives monetary policy is like. The problem is it creates inflation so the spiral does come to an end. The very problem with society is the cost of living has risen drastically. Economic theory suggests, that if you raise taxes, and you consume less, prices will come down because lack of demand. The only problem with this, is the adjustment period of prices can be painful. The pain is what we call a recession.

The good news here is, despite what you think or feel at this moment in time. The economy is doing much better. If we take a stand point of analyzing the economy through stock market pricing, it seems to be a more truthful answer. If you’ve ever analyzed stock charts, you come from a school of thought that the “market price” is the “truth” because the investors behind that price have traded it with a vote of confidence. What the chart says is we are out of the slump. The economy has in fact recovered from the financial crisis of 2008. A closer analysis of the chart posted will give you greater insight as to what is going on. It’s all up from here. On the chart you can see the crash in 2009. At at the far right of the chart the Dow Jones is now ABOVE the peak before the crash. In technical analysis, this is a very strong signal that we are entering a brave new bull market.

For most of us, what matters is what we are personally experiencing. Right now jobs are limited, and hiring slowly. People are still in debt and owe taxes. The educational system is on the brink. I can assure you this is the worst it will get. Based on past recessions many technical analysts say we have about 2 years until we are booming again. Keep in mind, this is just a personal opinion. If you’re smart, you’ll start investing in stocks now as many growth stock are undervalued at this point. Those that have invested in 2009 directly after the crash are sitting pretty with gains in their portfolio up to 40%. Future prosperity for the average American requires that they stay diligent in investing for the future. The markets are going higher. Don’t miss out on investing opportunities check out the Best Stock to Buy in 2010 article.

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