the people are changing
Posted by Jason Apollo Voss on Nov 22, 2008 in Blog | 0 comments
Happy Saturday to each of you!
You may have heard about yesterday’s financial market rally. The Dow Jones Industrial Average was up 6.5%, the S&P 500 was up 6.3% and the NASDOG was up 5.2%. All of this rise was attributed to President-elect Obama’s expected nomination for Secretary of the Treasury, Timothy Geithner.
As regular readers of this little blog know, I have been saying that for markets to stabilize, the people who got us into this mess have to leave and new people put into place. Financial market participants clearly appreciated the pick. Why? I feel that the overwhelming majority of people are just glad to know that President Barack Obama’s economic team has been nearly decided. These folks will provide the framework that determines the financial industry regulatory climate for the next four years. Now that names are being attached to titles the perception is that the future is more certain, less unstable.
So the reason for this post is to distinguish this most recent financial market rally from others that have occurred over the last several months…in other words, this rally was real because it was based on something substantive and meaningful and that will affect the worldwide financial system for almost half a decade. I have cautioned against the other rallies and my evaluation has been borne out by the performance of the financial markets, but this one was and is different.
Now would be the time to start investigating what businesses you want to invest in. Buying now would be premature as there is still likely to be bad economic data and bad quarterly reports from some businesses. But the fact is that the foundation has been shored up and strengthened.
Have a fabulous weekend!
Jason
