Market action the day after an Obama victory.

I wrote the post below on Oct. 30th and warned that there was some monkey business going on in the stock market and not to be fooled by the rally. Well, because Obama won and the wealthy see their grip on the economy as their last vestige of power, they are shaking the trees trying to scare everyone even more from the changes which were voted on in overwhelming numbers. But we knew we had a mess on our hands. Nothing has really changed except the wanted to lull everyone into voting for the Republican candidate. Well if we had, we still would be in a bad mess created by the so called professionals who created the idea of Credit Default Swaps, now a 56 Trillion dollar turd sitting on our economic table.

So what to do? Well, today as I had suggested to others, I put some money back into the local community bank I use, and bought some stock after it dropped in price. I ask those reading this not to panic as we did last time. Save cash, be optimistic about the future and wait for Obama in just 2 1/2 months. You will see that the Unemployment rate will go up on Friday as they factor in all the job losses. We have changed our future for the better but it is going to take time to feel it. This bad market is on George Bush's watch and Dick Cheney's as well as Hank Paulson and the Investment Banking community or should I say "Casino". Good luck in trying to weather this storm. I will let you know what I see as it becomes clearer in the stock market right here on my Blog.

October 30, 2008 post:

Markets point up but don't be fooled!

GDP for the 3rd Quarter was announced this morning and not surprisingly it was down -0.3%.This was not as bad as some had predicted with many expecting -0.6%. However, there were 2 good months with Sept. being the bad month. Markets appear to be set to open higher, but that doesn't really make sense does it. So this is a continuation of a Bear market rally. The Fed is lowering Interest rates but it doesn't and won't have any effect because no one is lending credit. So it's like the Butcher shop that advertised hamburger for $0.99/lb and when you ask for it the butcher says we don't have any. :)

Those invested in the stock market right now would be wise to take any profits they have in some stocks as one can predict without much effort these markets will pull back again soon and maybe deeper than before. My advice for those in cash is to use some cash to buy Ultra Short Funds of Indexes like the Dow or S&P500, as they are very cheap right now.

Things are not looking better in the economy even with all the actions of the government to mitigate the financial crisis. Therefore a stock market, which is rising is counter to the real conditions present. save yourself some pain and heed my advice. When might this pullback happen? My guess is just after the election. This rise may be to help give the Republicans a chance to win or keep some seats and so some Hedge Funds and investment bankers are pumping up the Indexes.