Sep 09, 2011
I know, a Bernanke-Obama tag team is enough to shake anyone’s confidence. It certainly shook mine. The Dow lost more than 300 points today, which represents a drop of 2.7%. This is the negative mojo I mentioned in yesterday’s blog. Today was no shock to me.
I saw both speeches yesterday. Bernanke gave little details about the “tools” he has at it his disposal to correct the economy’s course. He looked nervous, and sounded it, too. He even had the proverbial glisten of sweat across his forehead. Why? Because he, above all else, knows all too well that those tools he refers to are, at their very best, no better than a toothpick and a nail file in an effort to slaughter an oversized pig. Because that’s the case. And that’s why Bernanke looked so nervous.
Ditto for President Obama, who with his speech last night, withdrew any life in “the market” that Bernanke left in. Obama reminded me of Lebron James during the NBA finals earlier this year. Do you remember that? He fell flat and looked small.
And the stock market reacted to that with a 3% drop today. That’s what happens when leadership and talent come up small in big spots, like Obama did last night.
What “the market” really needs right now is incentive, freedom, and encouragement. Not another lecture. Not more spending. Not more smoke and mirrors. Not more failed policies. Hey, if four trillion dollars of stimulus couldn’t fix things then another half-of-trillion won’t do it either. Why bother?
But that is what’s before us.
And until that changes you must have confidence in your asset allocations, in your investments, and your strategic plan. As I say in my book, it’s the only way to be comfortable and successful with investment. If you need help, or have questions, email me.
Enjoy your weekend!