Thanks President Obama

Well, that didn’t take long.  After I knew President Obama was going to be our president, I changed my attitude and decided I’d give him the benefit of the doubt and maybe he’d bring some fresh ideas and turn this thing around.  I believed maybe once he sat in that very important chair and saw what was going on around him, he’d really do the right thing.  Wrong.  He’s actually initiating policy that I didn’t think he would do for a long time.  First, he is raising taxes on most of you and me and businesses at just the time we need tax breaks that could stimulate the economy.  We need incentives to get this economy turned around, not penalties.  He announced this huge budget yesterday that essentially will take money out of your pocket and spend it on a bunch of pork.  Hence, a market that continues to struggle.  At 1:30, the market’s basically flat after a horrible down opening.  I said on my show this morning there was no reason to buy stocks with horrible economic news, horrible policy and further pressure on bank stocks.  And that’s precisely why it may actually go up today.  So, we got the reversal, let’s see if it closes much higher.  That would be encouraging to see an up day with all the bad news.  Regardless of today, we’re still oversold and I expect a bounce.  It’s just taking a little longer than I thought it would.  Fortunately, I’m holding a bunch of cash.

In Obama’s budget, there is a ton of money spent on healthcare.  That should be good for the industry, right?  No.  I had to sell my Gilead Sciences (GILD).  Gilead is a manufacturer of various pharmaceutical drugs.  President Obama is promising more generics and healthcare for everyone.  That’s going to hurt many in the healthcare industry, especially the drug manufacturers.  Merck (MRK) and Abbott Labs (ABT) are among the worst performers today, both down over 5%.  With this attack on healthcare, there’s money moving out of healthcare today and going elsewhere.  Today, it’s moving into retail, especially Wal-Mart (WMT), Amazon (AMZN), Costco (COST), & Sears Holdings (SHLD).

Through A Trader’s Eyes

Just a quick note.  There will be some lineup changes on Monday on the Biz Radio Network.  My radio show will move to the 10:00 a.m time slot M-F.  Today was my last day on the 7:00 a.m. time slot.  Make sure you tune in everyday at 10:00 a.m. and give me a call at 877-777-7713.

This post published at www.karleggerss.com

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