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question everything

(47,264 posts)
Sat Jan 21, 2017, 12:24 AM Jan 2017

Obamas Stock Market Legacy Is Hard to Beat

After eight years in office, Barack Obama has a market record any red-blooded American capitalist could be proud of. U.S. shares have soared, oil prices have come down, borrowing is cheap and profits are up along with the dollar. Even those who bet against President Obama made good money, with returns from gold and bonds better than those delivered by shares under his predecessor, George W. Bush.

(snip)

Historians, economists and politicians will clash for years over the Obama legacy. But for investors, it has been a great time to bet on America. U.S. stocks delivered far better returns under Mr. Obama than almost any previous president; performance was also well ahead of the rest of the world.

(snip)

With one day of his presidency to go, the S&P 500 was up 182% from Mr. Obama’s inauguration in January 2009, delivering an annualized return including dividends of 16.3%. In data since 1928, only Bill Clinton produced higher returns. And, if lower inflation under Mr. Obama is taken into account, the real gap is tiny.

(snip)

While Mr. Obama might not get much credit for the boom, investors who listened to him would have done particularly well. In March 2009, just a week before stocks hit bottom, the new president gave the most contrarian investment advice possible: buy shares.

“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,” he said. He was right. Anyone who bought and held the S&P 500 based on his comments rode one of the biggest bull markets in history, more than tripling their money even before dividends.

More..

http://www.wsj.com/articles/obamas-stock-market-legacy-is-hard-to-beat-1484845684

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doc03

(35,148 posts)
1. The company I worked for went out of buiseness in April 2009 at the bottom of the Bush depression.
Sat Jan 21, 2017, 12:58 AM
Jan 2017

At the time my 401k was in the crapper. I rolled my 401k into an IRA when I retired and today the balance is up over 150% and I have
withdrawn over $30000 the last 4 years. Thanks Obama

question everything

(47,264 posts)
2. This shows the wisdom - for lack of a better word - of shifting from defined pension
Sat Jan 21, 2017, 12:55 PM
Jan 2017

to 401K and IRA. Had you relied on a pension it would have disappeared when your former employer went out of business.

doc03

(35,148 posts)
3. You are 100% wrong. When I retired my 401K was in the crapper. If I didn't have a Defined Benefit
Sat Jan 21, 2017, 07:15 PM
Jan 2017

Pension in addition to the 401K I would not have been able to retire. I would have been forced to hunt for a job to supplement my income and pay $850 a month for health insurance. I get a Defined Benefit Pension from the company that sold us off in 2003 and
I also get a Defined Benefit pension from the USWA for the years 2003 to 2009. I don't know where you learned that bullshit about
401ks and IRAs, they may work OK if you just happen to reach retirement age when the market is up. But what do you do when there
is a Great Recession the year you want or have to retire?

 

golfguru

(4,987 posts)
4. Thank you Janet Yellen...you kept market roaring
Sat Jan 21, 2017, 11:22 PM
Jan 2017

with the zero interest rate policy (ZIRP). You single handedly wiped out competition from CD's & Bonds.
My stocks have gained north of 6 figures in 8 years. I have no more financial worries in retirement.

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