Friday, November 07, 2008

Obama's impotence halts stockmarket drop.

President-elect Obama's influence over the economy was demonstrated by reviewing the Dow Jones Industrial Average (DJIA) and its reaction to Obama's first press conference on November 7 . The chart above shows the DJIA for the November 7 and the market's level throughout the day.
Obama's press conference began about 10 minutes before 3pm (Eastern).
Immediately prior to the Obama press conference and at it's start, the Dow Jones sharply sank as shown on the chart above (as Obama speech).

But, AFTER Obama stated,
" Now, the United States has only one government and one president at a time. And until January 20th of next year, that government is the current administration.

I've spoken to President Bush. I appreciate his commitment to ensuring that his economic policy team keeps us fully informed as developments unfold. And I'm also thankful for his invitation to the White House."(emphasis ed.)
The slide immediately stopped and began to reverse shown on the chart above (marked as January 20) once the President-elect made it clear he was not going to interfere with the current Presidency. How will the market respond after January 20, 2009, to a President Obama?


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