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Obama made one of history’s greatest stock market calls 9 years ago

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obama wink
Obama
told you so.

Carolyn
Kaster/AP


  • The ongoing bull market
    in 

    stocks will
    tie for the longest ever on Wednesday. 
  • Stocks fell to the lowest level of the recession nine
    years ago on March 6, 2009. 
  • Days earlier, Obama said the market was getting so
    cheap that “buying stocks is a potentially good deal if you’ve
    got a long-term perspective on it.”
  • Stocks have nearly quadrupled since
    then. 

Former President Barack Obama nailed it. 

Nine years ago, on Friday, March 6, 2009, the S&P
500
index dropped to an intraday low of 666.79. This level
also ended up being the bottom of the stock market’s decline in
the midst of the Great Recession. 

Three days earlier, Obama, who entered office in 2009 — the year
after stocks lost
nearly 40%
— answered a reporter’s question about the stock
market. But he could not have known that it would end up being
one of the most perfectly timed market calls ever. 

On March 3, Obama told reporters:
“What you’re now seeing is profit-and-earnings 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.”

After the market closes on Wednesday, the current bull market
will tie for the longest in history. Since the March 2009
low, the S&P 500 has nearly quadrupled, with a gain of about
324%.



obama spx

Andy Kiersz/Business Insider

Obama also offered a valuable lesson in investing, which
would come handy when the next recession or bear market hits.

“What I’m looking at is not the day-to-day gyrations of the stock
market, but the long-term ability of the United States and the
world economy to regain its footing,” Obama said. “And the stock
market is sort of like a tracking poll in politics. It bobs up
and down day-to-day, and if you spend all your time worrying
about that, then you’re probably going to get the long-term
strategy wrong.” 

Watch Obama’s full response below:

See also: 

 

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