Though the equity markets are much smaller than the fixed income markets, everyone focuses their attention on them... Focus becomes even more specific when looking at the Dow, which is made up of only 30 companies. In any event, President Obama stated yesterday "buying stocks is a potentially good deal if you’ve got a long term perspective." I'm taking this quote as "Obama Calls The Bottom" and I'll be periodically posting where the Dow is in comparison to Obama's claim.
For reference, the Dow closed yesterday at 6,726. Return = 0%.
(Dealbreaker also read the reports of Obama's comments, and are tracking the "First Portfolio").
After 1 week, the Dow was at 6,926 or exactly 200 pts higher.
The 1 week return is 2.97%
The annual geometric return is 458.9% (if you make 2.97% a week)
The annual arithmatic return is 254.6% (if you make 200 pts a week)
Obama is basically the best stock picker ever