Friday, November 21, 2008

Obama: encouraging or discouraging words?

Could a big part of the dragging stock market be the Obama factor? I mean, when you consider all the anti-capitalist rhetoric from the campaign, and when you consider that what scares investors away is uncertainty about the market's future, I think a great deal is depending on what Obama says and does next. It's not hard to connect the dots, as Neal Boortz does here:

The stock market was down another 400 points or so yesterday. People are wondering where in the world this will end. Retirement funds are being devastated. People are losing jobs. The picture certainly isn't rosy right now, and nobody can really explain why. The media, on the other hand, is certain that there is one recent event that is having no effect whatsoever on this economic slide; and that would be the election of Barack Obama.

OK ... why don't you try to put on an investor hat for a moment here. Let's say you're considering getting back in the stock market. You know that some stocks out there are at historic lows, and they're bound to bounce back ... right? So why don't you just take some money out of your savings or out from under your mattress and plow it back into the market?

Let's see if we can find any reasons why you might hesitate.

We have a president-elect who ...

... has promised to raise capital gains taxes, perhaps even double them. So this guy is just waiting for you to jump into the stock market and make some money so he can seize a huge portion of it. Why jump now? Obama has been asked if he plans to go forward with his capital gains tax increase, but he's not saying. Just hold off on your investments for a while until he tips his hand. If he goes the tax increase route you might want to consider trying to move your money offshore to grow until he's out of the picture.

... has promised to sign the so-called "Card Check" bill. Now again, you're smarter than the average voter, and you realize that this unionization-through-intimidation idea is going to have an adverse affect on American business. As soon as the bill is signed union thugs (organizers) will start their petition drives at thousands of businesses across the nation. Large businesses and small businesses. America's largest employer, Wal-Mart, will be one of the first targets. You don't know how far this will spread, but you do know that every business that is unionized will be a poor investment for you. So you wait .. you wait to see what is going to happen with card check.

... has promised to raise income taxes on the largest jobs producing segment of our economy, small businesses. During the campaign you heard him say that he would not raise taxes on 95% of small businesses, but you know that most of the jobs rest with the remaining 5%, and that's where most of the new jobs would be created. The ignorant voters bought his 95% line, but you're not that stupid. You saw through his rhetoric. So, again, why jump into the market now? Wait until we see what Obama is going to do with these tax increases on America's jobs-producing machine.

... has promised more business regulation. Obama is no fan of free enterprise. He loves government. Obama believes America is great because of government. You really think you need to wait before you make your investment moves until you see just what regulatory punishment Obama has in mind for the free market.

So .. think about it. We've only scratched the surface here. We could also talk about expanding the family leave act and many other little federal anti-business goodies. Invest now? Why? Doesn't it make more sense to wait until you get a true measure of our new anti-capitalist president?

(bold emphasis mine) Some people say that Obama will be more of a centrist than a leftist when he assumes command. But there is a lot of uncertainty right now about just what he will do. We only have his campaign statements to go by, which were pretty anti-business. People aren't likely to re-invest in the stock market until they have some clues that will help them to forecast where the market is likely to go. Stability, and certainty of what the rules will be, are required for that. Obama has it within his power to create that stability and certainty, or not. I say it's time for some encouraging word from him... if he has any.

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