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Why January 20 Is Next Year's Most Important Date For InvestorsBy
Wednesday, December 31, 2008
President-elect Obama makes his inaugural presidential speech on January 20. This speech is going to determine the direction of the stock market for the rest of 2009. If you are a serious investor, it's essential you watch this speech... In the short run, Obama's plan might make people feel optimistic again. This could cause a small boom in the stock market. That's why I'll be watching sentiment so carefully after Obama's speech. If Obama can fire up the crowd, I'm ready to bet on a small 12-18 month bounce in stocks.
Further Reading:
The Stupidity of Government Intervention Market NotesOUR CHART OF THE YEAR, 2008
Our final chart of 2008 highlights a theme we've been writing about for several years... an idea not one American in 50 stops to think about. It's a shame, because it's also one of the market's most important trends.
The chart shows the steady wealth-preserving power of gold since 2000. Back in November, we offered you a series of charts showing how gold is soaring against just about every asset in the world... currencies, real estate,other commodities, and stocks. Those charts make hash out of the claim that gold performed poorly in 2008. Since most folks see the stock market as a prime destination for retirement savings, we'll look at how gold has performed against the S&P 500. The performance of the S&P is basically how your 401(k) is doing. The S&P is down about 30% in the past 10 years. Gold has tripled in the past 10 years. This "stocks down, gold up" situation produces the gently rising uptrend you see below. This uptrend is stretched a little to the upside, so it's bound to take a break... But given the truckloads of fake paper money Washington is handing out to spendthrift fools, expect the trend of sound, real money growing in value to continue for years and years. |
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