We thought Obama was a lawyer by trade, not a finance guy. But it seems like he knows his stuff when it comes to the market.
In March of 2009, the economy was wrecked. Stocks were still headed downward and nobody could agree on whether America would implode or recover.
It was at that time Obama told CNBC, “What you’re now seeing is 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.”
As The Atlantic points out, stocks hit the bottom four days later and started their slow climb back up. Three years later, we’ve hit 14,000. And if you had bought an index fund when Obama suggested? It would have gone up 117%. How’s that for investment advice?
Notice that he said, “long-term perspective.” We totally agree—you shouldn’t play the market, but keep your eye on the prize: a good retirement, or a goal that’s five or more years off.
Kind of makes us want to rewatch his State of the Union speech and look for more sage/prophetic personal finance advice.
Image credit: Flickr/jervetson