Friday, November 07, 2008

Traders Didn’t Get the Memo, Either

In the first few days after the historic election of Barack Obama, the US stock market tanked (links below). Tanked! Why is this important? Because the stock market always looks to the future. That’s what investors do. They constantly look to the future, try to predict it, and respond accordingly. Remember the saying “buy low, sell high”? How do investors know when a stock value is at a high or a low? They don’t. Investors make informed guesses about the future. If you closely track stock market results to major news stories this trend is easy to spot - so easy that it’s an accepted maxim. The stock market always looks to the future. Why is this important: because the stock market’s immediate response to the election of Barack Obama was to pull out faster than a sailor in a brothel. This is a very strong indication of how the world’s investor’s view the Obama Presidency. I guess the traders didn’t get the memo, either. I’m just sayin’…

Here are some stock market news links:


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