For the first time since 2008. Another reason to re-elect President Obama. Meanwhile the GOP is going to hit Obama how? The latest play is high oil prices.
The Nasdaq already is higher than it's been since 2000-not only has it made up for the losses of 2008 but it is even making up ground lost in 2000. The Nasdaq is now just 52 points away from another symbolically important number-3000.
Many on the Street currently believe the market is due for a correction. That could be true on a technical level-not saying that it is but it's not impossible. However in the long term, I am ready to do an Irving Fisher and declare, "The fundamentals of the US economy are strong!" I won't however claim that we have hit a "permanently high plateau."
If the market does pull back it's only temporary. That's my take anyway. Right now if I were in a position to be a market participant again-maybe I will again soon, I am finally working again...-I'd look at the banks as a major area of being undervalued. Bank of America is a steal at $8. I would either back up the truck and buy a bunch of stock or buy some $12 calls that expire in say a year. The first strategy of buying it outright has very little downside risk.
Still the GOP is trying to tell us things are terrible out there and getting worse. No. They remain highly challenging, certainly. You don't have to tell me that-before getting my current job in January I was out of work since last May. Incidentally, if you are currently looking for work, one market that definitely is hiring is the one for security guards.
The GOP is trying to hang high oil gas prices on Obama. To the contrary, a big part of the problem is that the economy has come back. While high gasoline prices put strain on Americans, the fact is that that main reason they're up is because of the improved economy. It was a total drop in demand in 2008 which saw them plummet.
Still even with gas at $1.87 when Obama came in this was cold comfort for the 750,000 Americans losing jobs every month. Honestly there's nothing Obama can really do about high oil prices. You could argue that a stronger green policy could help but this is hardly what the GOP has in mind.
Their ideology is that if only Obama opened up off-shore drilling, etc. that would bring down prices. Of course the main thing this is about right now is trying to make the XL pipeline more popular. In reality Obama has opened up off-shore drilling-he already gets a lot of flack from some left-liberals for that.