Power And Dollar

Market Is Still Waiting For Obama

How is the Obama administration doing?  Obama may not have assumed the duties.  However, he definitely started his impact.  For one, gun sales are going up and that translates into stock prices already.   

 

S&P continues to fall.  Starting on November 5 and including today (11th), S&P has fallen 4 days.  S&P fell from 1005 to 900 now.  This is another 10% dropOn the other hand, the dollar is rising all other currencies.  US has risen 3.5% against Euro, 4.9% against Canadian, 3.7% against pounds.  

  

So, is it a vote of confidence or not? Or once again, do the foreigners love Obama more than the “real Americans”?  

 

The strength of US dollars is a reflection of international confidence.  In fact, this is more like a no-confidence of everyone else than a confidence of US economy, let alone the perception of future performance under Obama administration.  The market behavior is saying: we are facing a global economic recession, the money has nowhere to go; US is the resort of my money.  

 

The weakness of the stock market is performance is bad, to put it nicely.  The money flowing into the US continues to be in the form of cash equivalents and not into stock market.  The market behavior is saying: The money does not have confidence in the future of US economy.  

 

The market wants to have the most liquid form of capital: cash.  What will tick the market to new behavior?  Political news will set new directions.  Economic news of course is relevant, but we are in a market for political news since the perception is recession and therefore government intervention is expected.  Relevant news are: if there will be announcement on November 15 and cabinet appointments.  

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November 11, 2008 - Posted by | Current Events, 美國, economics, obama, politics, wordpress-political-blogs

3 Comments »

  1. […] does not have confidence in the future of US economy. The market wants to have the most … View post Add your […]

    Pingback by » Market Is Still Waiting For Obama | November 11, 2008 | Reply

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    Comment by Susan Kishner | November 11, 2008 | Reply

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