Wednesday, March 4, 2009

Hey President Obama, it's PRICE and Earnings Ratio!

"What I'm looking for is not the day-to-day gyrations of the stock market, but the long-term ability for the United States and the entire world economy to regain its footing," Obama said after meeting in the Oval Office with British Prime Minister Gordon Brown.

"You know, it bobs up and down," he said, comparing stock market movements to daily tracking polls during political campaigns. "The banking system has been dealt a heavy blow," he added. "There are a lot of losses that are working their way through the system. And it's not surprising that the market is hurting as a consequence."

Sounding ever more like an analyst, he said that "profit and earning ratios are starting to get to the point where buying stocks is a potentially good deal if you've got a long-term perspective on it."The president predicted a recovery "but it's not going to happen overnight."

(Do me a favor Mr. President, stay off camera, stop fear mongering, seal your lips and get someone to give you a few economic lessons.)

The P/E ratio (price-to-earnings ratio) of a stock (also called its "P/E", "PER", "earnings multiple," or simply "multiple") is a measure of the price paid for a share relative to the annual net income or profit earned by the firm per share.[2] It is a financial ratio used for valuation: a higher P/E ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with lower P/E ratio.

Addendum

Is he kidding? He's waging an all-out war against capitalism, and he wants us to buy stocks? This man who wants a government-controlled economy wants us to invest in the stock market? This is like the Surgeon General telling us to go out and have unprotected sex with drug addicted street walkers. Yeah ... let's all do that! Neal Boortz

4 comments:

OweMe1Cannoli said...

Right, VN8 ... my question is how long is "long term"? That's a milkable term like "inherited". My guess is that "long term" means four years and then we'll have a decent republican un-screw his mess. So this is "change we can drown in".

I'm still working on what "we won" means lol.

Jim said...

Yet the market rose 150 points today.

OweMe1Cannoli said...

Jim - WooHOO!!!! only 4500 points to go!!!

VoteNovember2008 said...

6875.84 +149.82 (2.23%)
Mar 4 4:02pm ET

Yep, we can only continue to pray. The annoited one suggested to "buy" and the Dow shot up 149.82points. We will have to see what the Asian Markets are doing when we get up in the morning! VN8