Rally Caps!

Like many of you reading this, I made a lot of money during the Clinton presidency. Love him or hate him, Bill Clinton and his economic team knew how to stimulate the economy, and they knew how to make the stock market go higher, year after year. Under Clinton’s Presidency we saw the best bull market in US history, and there’s not even a close second. The bottom line is that these guys knew every trick in the book, and they weren’t afraid to use them (see market manipulation).

Based on this afternoon’s news and the stock market reaction, we may just have another President in office that is willing to do the same thing.

Today, within an hour of each other, both JP Morgan and Bank of America top exec’s announced very large common stock purchases….and no, this was no accident. My strong guess is that Obama and his economic team engineered this, and the timing couldn’t be better coming off of the 20% drop in financials yesterday. Yesterday was a one day crash in banks and brokers, and then today was the exact opposite. Again, this was no accident. On top of this, both IBM and Apple reported much better than expected earnings, which seems a little strange in the kind of economy we have. I’m not complaining at all…this is very good news for a sick economy.

Combine all of this with the rumored news coming from Obama on his economic stimulus program, and we may have the makings of another large bear market rally.

We may also have a hint that we once again have a President that knows how to make the stock market go up.

Stay tuned….today’s actions were VERY interesting.

Kip