Obama: Buying Stocks May Be a ‘Good Deal’

By Jeff Zeleny
Doug Mills/The New York Times British Prime Minister Gordon Brown met with President Obama at the White House.

President Obama said Tuesday that he is not intently focused on the “day-to-day gyrations of the stock market,” comparing the downward roller-coaster on Wall Street to the fickle nature of political polls.

“You know, it bobs up and down day to day,” Mr. Obama said. “And if you spend all your time worrying about that, then you’re probably going to get the long-term strategy wrong.”

The president did not offer any specific stock tips, but suggested that he believed the market might be close to its low point.

“Profit and earning ratios are starting to get to the point where buying stocks is a potentially good deal,” Mr. Obama said, “if you’ve got a long-term perspective on it.”

With British Prime Minister Gordon Brown at his side in the Oval Office, Mr. Obama said it was more important to focus on whether lines of credit were flowing, businesses were making new investments and unemployed workers were finding jobs. He said was “absolutely confident” the global financial crisis would turn around if those markers were met.

As his words were broadcast on cable networks shortly after noon on Tuesday, the indicator at the bottom of the television screen showed that the Dow Jones industrial average was down once again. On Monday, the Dow closed below 7,000 for the first time since 1997.

“What I’m looking at is not the day-to-day gyrations of the stock market, but the long-term ability for the United States and the entire world economy to regain its footing,” Mr. Obama said. “And, you know, the stock market is sort of like a tracking poll in politics.”

With lax regulation and major risks undertaken by banks, Mr. Obama said it was “not surprising that the market is hurting as a consequence.” He said the decline on Wall Street was a “natural reaction” given the bad assets that have soured banks.

Comments are no longer being accepted.

Susana March 3, 2009 · 2:12 pm

I agree. I think the job numbers might be a better way to measure the economy’s improvement.

Gerald Leibniz March 3, 2009 · 2:14 pm

Obama isn’t worried that trillions of dollars have been lost since he won the presidency? You know, I believe him in fact I think he likes it, he certainly has benefited from it. His view, you can’t let a crisis go to waste, which is why every move he makes is anti business, anti middle class. He wants to consolidate economic power into the hands of a few cronies in government. I hope he fails.

Augustine 25 March 3, 2009 · 2:15 pm

Wow! This is a lot of spin to distance Obama from his own economic mistakes and the fact that the Democrats – who have controlled Congress for the last two years – have frightened off investors and business people. We aren’t seeing day-to-day drops. We are seeing consistent month-to-month drops. :)

TR March 3, 2009 · 2:15 pm

Obama is in denial and doesn’t understand cause and effect.

God Help Us.

TR March 3, 2009 · 2:19 pm

My prediction–Dow won’t bottom out until it hits 5100.

Greg March 3, 2009 · 2:22 pm

Wow, the first 3 of 4 responses by the typical posters, posting the typical responses.

You three (Gerald Leibniz, Augustine 25, and TR) are all missing the forest for the trees.

Just to actually spell it out: the forest is the American economy. The trees, in this case, is the stock market, it’s monetary value, and lack of investment.

Take a big picture approach.

And specifically, it’s total garbage Augustine 25 that Democrats have frightened off investors and business people. If that had been the case, then why did employees of investment firms contribute more to Obama’s campaign than McCain’s?

BillD March 3, 2009 · 2:24 pm

What did we do to deserve such a handsome president?

Kris March 3, 2009 · 2:31 pm

He is exactly right. The stock market is not the be all and end all. Of course the stock market doesn’t like what President Obama is doing. They want all the flexible to do what they were doing in the past, and they are not going to get it. They are the ones that got us in this mess, so why would they like anything that Pres. Obama proposes to get us out of it. Job employment is the real barometer.

prince March 3, 2009 · 2:33 pm

obama gets it. we’re on our way to full recovery.

Canisius March 3, 2009 · 2:36 pm

Well people you got your change… you will get your Marxist country shortly followed by a Right wing revolt,,, this college professor should go back to teaching, he going to sink this great nation

bobby huntington March 3, 2009 · 2:37 pm

Maybe he SHOULD look more intently at the daily stock market. He would if he was near retirement and had a 401k.

EH Lynch March 3, 2009 · 2:40 pm

I voted for Mr. Obama but haven’t been happy with the management of the crisis, so far. Geittner is Paulson, Jr., as I see it. I would have preferred to see a truly fresh face in that position, somebody who wasn’t in the thick of the Bush method of rescue. Alas, I was not consulted.

Having said all that, I’m hoping against hope that they’re right and I’m wrong.

Pius Okaneme March 3, 2009 · 2:42 pm

Fear not rich people. If you believe there is strength in numbers, then you will be rest assured that if many Americans are healthy, well educated and employed, it create a very prosperous and powerful America.

Gerald Leibniz March 3, 2009 · 2:42 pm

— Greg

I have already illustrated to you that you don’t understand the grid or power systems, you yourself are illustrating that you don’t understand the economy. The idea that the stock market is not an indicator of economic health is simply ludicrous.

hinckley March 3, 2009 · 2:43 pm

Only an IDIOT (or a layperson) pontificates about the stock market’s daily gyrations and then thinks he/she can explain them by pointing out one or two events of the day!

The market overreacts to the up or downside everyday! Over time, the “proper” valuation is reflected somewhere near the mid-point of the overreactions.

Blaming Obama’s first 35 days in office for this market’s slump makes about as much sense as blaming your unborn grandkids for global warming!!!

Norman March 3, 2009 · 2:43 pm

Say, stupid question: where has all the money gone that has been lost? Can anyone tell me? Norman

KC March 3, 2009 · 2:44 pm

The stock market is a reflection of American business. If the price of shares are down, it’s because investors think that the company are going to earn less in the future. If they are going to earn less, they won’t need to hire new employees. Now, unless President Obama is going to hire all of these people in the Federal Government, where are these jobs going to come from?

Leo Gold March 3, 2009 · 2:44 pm

I am a professional financial advisor and radio show host. Obama is exactly right. The stock market is the scoreboard; you can’t play good baseball if you’re watching the scoreboard. You have to watch the field. Those who criticize him for in these posts for not standing out in left field staring at the scoreboard and picking his nose simply do not understand.

Leo Gold

Pius Okaneme March 3, 2009 · 2:44 pm

Fear not rich people. If you believe there is strength in numbers, then you will be rest assured that if many Americans are healthy, well educated and employed, it will create a very prosperous and powerful America.

Xavier Martinez March 3, 2009 · 2:45 pm

I believe the president is right. Those who wish him to fail should stop to consider for a moment that if he fails, we will all fail with him.

rw March 3, 2009 · 2:46 pm

TR–what is your basis for a prediction of 5100 as a low for the DJIA? Why not 5000 or 5200 or 4739? You, like everyone else, are pulling numbers out of your backside. Mr. Obama is correct–the stock market is just one part of the economy, not the the totality. Those geniuses on Wall Street are acting just like a bunch of teenagers whose parents just walked in on the beer party–the party’s over and now it’s time to clean up.

HD March 3, 2009 · 2:46 pm

He’s right. The numbers only reflect their own image. Wall St. tends to think of itself as the be-all and end-all of the universe. It isn’t. This isn’t to say it’s not important, just that it isn’t the only thing that’s important. Unfortunately, America has lost most of its manufacturing over the years. We have become a nation that makes its money by speculating and by charging one another interest. Our ability to make money depends on money and its value, not on tangibles.

The stock market was inflated unrealistically last year, and when it crashed, it took European and Asian markets along with it. I don’t think the Europeans and Asians are wasting their energies blaming Obama. They are blaming the businesses in which they invested, the people who ran them into the ground, and the regulators who didn’t regulate.

Don’t forget, the stock market is nothing more than a calculated risk. It is a gamble. It may not look like Vegas or Atlantic City, but the principles are still the same. You put money up, based on what you think will happen. When you win, you take credit for your brilliance, judgment, and insight. When you lose, you blame someone else. That’s what’s happening on Wall St. these days.

Yes, Gerald, billions (trillions?) of dollars have been lost, and if you want to mark it from the day he was elected, while George w. was still president, you may use the inflated figures. As I recall, George was still the decider up until Jan. 21, but if yo want to blame Obama for existing at that time, well, you just go right on and blame him.

George March 3, 2009 · 2:46 pm

Be afraid. Be very afraid.

Jobs may be a better measurement of economic recovery, but you have at least consider that Americans are seeing a rapid decline in their retirement investments. Although Obama is not concerned with the day-to-day gyrations of the stock market, he should at least be concerned with its precipitous decline since he has taken office.

Is it time for mid term elections yet?

MM March 3, 2009 · 2:46 pm

Just like when the stock market would inexplicably rise in 2007 despite constant news and facts coming out that the sky was indeed about to fall in the housing market, I see those who move the markets as a bunch of self-important incompetent forecasters who survive on eating their own bull.

Andyr March 3, 2009 · 2:47 pm

Attention: Leibniz, Augustine25, and TR

Obama has been in office a little over a month designing a response to a set of problems that have developed over two decades. Your people (and Clinton) got us into this mess. They lost the election because of it. Now have the decency and courage to accept the consequences of your bad judgment by giving this decent man a chance. Tantrums are not arguments.