Stock Market Analysis

Tuesday, November 04, 2008

Which President Is Better For The Stock Market?

ANSWER : NEITHER

Neither because it doesn't matter who's President. The Economy works on an engine of its own. Recessions will come and recessions will go no matter how brilliant or blunt a President is. In fact, even if we see the stock market recover from this point forward, it is due to all the things that have happened and have been done so far and due to the discounting effect that I have mentioned the past week. Why wouldn't a new President cure the stock market? Because whatever can be done to cure this mess have been done so far. Those are not the kind of things that can be done only with a change of President.

Being President is a tough job and as commoners, we should examine ourselves before we cast the first stone at the exiting President. Could anyone of us have done a better job if we are President? Have the most brilliant President in the history of the United States ever managed to completely avoid recessions and beat the economic and business cycle? No. The Economy is a bigger engine than mere human effort can change. So much theories and methods have been proposed (some winning nobel prizes) to smooth out the business cycle but what happened in the end? Nothing changed. Cycles are everywhere in nature and is the natural state of things. Earth changes in cycles. Seasons come and go in cycles. Humans have biological cycles and a collection of human worldwide involved in what is known as the economy has cycles as well. Nobody can change that, not even with a new President.

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