Barack Obama so far has had the worst stock market performance of any new president in American history, including Franklin Delano Roosevelt during the Great Depression.
Let’s look at the key dates in Barack Obama’s Administration so far and see what the stock market did around those dates:
November 3, 2008: Obama is Elected
November 3, 2008: 9326.04 Open
November 4, 2008: 9139.28 Close
So far, not that bad, right? However, if investors believed in Obama’s message of hope they would buy, instead of sell, around that time.
January 20, 2009: Obama is Inaugurated
January 20, 2009: 8,279.63 Open
January 20, 2009: 7,920.66 Close
Obama’s inauguration didn’t exactly make investors celebrate. Also note, between Obama’s election and inauguration, the stock market dropped 1200 points. If they believed in Obama, the stock market probably would have inched upward, even in a down economy.
February 17, 2009: Obama signs stimulus package into law.
February 17, 2009: 7,845.63 Open
February 17, 2009: 7,502.59 Close
The stimulus package clearly did not stimulate any investors into buying. Note that as of February 17, there was a 1800 point drop since the election, and a 400 point drop since inauguration.
February 27, 2009: Obama announces budget
Febraury 27, 2009: 7,180.97 Open
March 2, 2009: 6763.29 Close
As of today’s close, Obama has overseen the worst stock market performance in the history of America for a new president. It’s an unprecedented 28% drop from Obama’s election to today. If you don’t believe my numbers, you can check the historical data here.
I know EXACTLY what the liberals are going to argue: “Obama is dealing with the mess. It’s not his fault because the problems were created under the Bush Administration. The stock market is weak because of what Bush did to the economy.”
Well guess what, folks…as ANY economist will tell you, capital markets are forward-looking. The Dow Jones Industrial Average usually rises and falls based on expectations of what will happen, not based on what’s happening right now. In other words, if stocks fall, it is because investors believe the future is looking bleak, not because the present state of the economy is bad. Note that the stock market collapsed in 2001 in anticipation of the recession that followed. The stock market is collapsing now in anticipation of the fact that Obama’s plan will be ineffectual.
So far, every time Obama has moved to improve the economy, the stock market has responded with a precipitous collapse.
For another conservative take, Michelle Malkin has a lot to say about the stock market collapse under Obama here.
Meanwhile, even liberals are acknowledging that Obama’s administration is mishandling the economy. This piece in the Huffington Post acknowledges that Obama’s economic team is failing to act effectively, though the author still refuses to criticize her Messiah.
Investors so far are unequivocal in their opinion of Obama. They have zero confidence in him, as we further report on here. If investors had any confidence in Obama’s vision of the future, they would be buying stock right now instead of heading for the hills.
Be Afraid. Be Very Very Very Afraid.
See an interesting video on Obama and the stock market below: