The Stock Market

the stock market
How can the Stock Market be based on emotions & psychology but not the private sector creating jobs?

If Obama is inspiring confidence in the stock market – why doesn’t that translate to the private sector as well?

I think you have your info backwards. I talk to my Financial Adviser quite often and he constantly tells me one of the primary issues with Wall Street is they don’t trust Obama and take a defensive posture because of this. They simply don’t know whats coming next from him. As a result, Trillions of dollars are being held back hoping at some point in time, Obamas economic strategy will make sense and actually encourage them to add employees. In regards to jobs, if we, for the moment, dismiss those generated by the government ( who pays their wages?) and specifically talk about the private sector, the same principle applies. Business, once again, does NOT know what the future cost per employee will be. So they are cutting back on hiring and waiting for the Obama dirt to settle. This is pretty simple economics 101. If YOU owned a business and YOU could not calculate how much a new hire would actually cost ( salary and BENEFITS), would you go ahead and hire? If you say YES, why? Would you buy a car if you didn’t know how much it was going to cost you?

Explain Like I’m Five: The Volatility of the Stock Market

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