Stocks Rally Right Before Obama's Stimulus Announcement

by Idea go

As I said yesterday, whenever the stock market goes up in one direction just a little too much, it’ll balance itself out by going the other direction. For almost 2 weeks, we saw the stock market rally and get very close to the 12,000 mark. And just as quickly, it went back down below the 11,000 mark for a short time. And for the past 3 days, the stock market plummeted several hundred points, basically undoing what the 2 week rally did for us. But today, comes the re-balancing once again.

The stock market has so far seen huge gains today all around. About a 2% increase in the major Indexes, this comes after a 3 day plummet that carried over the Labor Day Weekend.

The Dow Jones Industrial Average so far has seen an increase of more than 220 points and is now sitting at 11,361. That’s a perfect 2% increase from yesterday where it suffered a significant loss.

The NASDAQ Composite is currently at 2,535 after a gain of more than 61 points, almost 2.5%. The S&P 500 so far has risen 27 points, or more than 2.3% and is closing in on the 1,200 mark once again. And the New York Stock Exchange (NYSE) has seen an increase of more than 168 points and it’s currently value is 7,316.

All of this comes after President Barack Obama announces that he will propose a new stimulus to create jobs. This job-creation package is contain more than $300 billion in tax cuts and government spending as reported by the Wall St. Cheat Sheet. This announcement has allowed the stock market to rally like it has today. And unless something drastic happens, we can expect the stock market to stay in the green for the rest of the day.

The proposal is due to come out tomorrow, we will have to see exactly what the proposal entails and determine whether it’s a good idea or bad idea for the economy. Why would it be a bad idea? Well, this wouldn’t be the first stimulus the government has given out in the past few years. The other stimuli were supposed to help stimulate the economy and encourage consumers to spend. They were supposed to take us out of the mini-depressions that we keep experiencing. This stimulus plans to do the same but I am not sure how successful it will actually be.

The economy however, sees the stimulus as good news, thus triggering a rally for the stock market. The stock market may rally tomorrow as well as Friday because of this announcement. This will give investors hope that consumers will start spending again and the economic recovery will speed up. The stimulus isn’t set to come until 2012, so the spike we will experience may be temporary, but it will be a spike nonetheless. If the stock market goes up too much in a short period of time, we can see it balancing itself out again in the near future, like it has done today.

Well President Obama, I hope that the stimulus idea will help the economy. You don’t have much time left to prove that you deserve to be reelected for a second term, and if this works out well, I am sure you won’t have much of a problem for November 2012.

My readers, what do you think about the Stimulus proposal? Do you think it’s a good or bad idea?

Nazmus

Loves creating websites and helping others. Some websites include, EasyProgramming.net, Nazmus.com, and Gamers-Forum.com.

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