Richard Tafoya
Jan 21st, 2009, 07:45 PM
CNN:
http://money.cnn.com/news/newsfeeds/articles/djf500/200901211646DOWJONESDJONLINE000884_FORTUNE5.htm
Financials stocks on Wednesday steered a broad market comeback after the prior day's rout that had the sector matching its worst day ever and the Dow Jones Industrial Average tallying its worst Inaugural Day performance in its history.
But some analysts see silver linings in President Barack Obama's economic stimulus plans, saying the new administration's proposals are reminiscent of those in play in March 1933, when Franklin Delano Roosevelt took office at the height of the Great Depression.
"The most significant piece of legislation in the next few weeks will be the fiscal stimulus program," said Jeffrey Kleintop, chief market strategist, LPL Financial. "It may bolster confidence in the economy and markets or it may fall short and disappoint the market by not being put to work quickly enough."
During the first 100 days of FDR's term, the stock market climbed about 80%. Whether history repeats itself remains to be seen.
"Obama received a rough welcome from the markets yesterday despite the excitement and optimism surrounding the inauguration," said Bill Stone, chief investment strategist, PNC Wealth Management, PNC Institutional Investment Group.
"Those hoping for the 15% gain that welcomed [FDR] in 1933 were certainly disappointed," he said. "But the weakness likely has less to do with the president than with the continued uncertainty around two major issues: economic weakness and the financial sector."
...
"Right now we're waiting to hear if Tim Geithner is approved (as Treasury Secretary)," said Marc Groz, founder and chief investment officer of Topos LLC. "If he isn't confirmed, then we're back into 'who's in charge here.' Whatever people think of Geithner's record and capabilities, he's a known quantity. Collectively the market does not want to have more uncertainty." .
http://money.cnn.com/news/newsfeeds/articles/djf500/200901211646DOWJONESDJONLINE000884_FORTUNE5.htm
Financials stocks on Wednesday steered a broad market comeback after the prior day's rout that had the sector matching its worst day ever and the Dow Jones Industrial Average tallying its worst Inaugural Day performance in its history.
But some analysts see silver linings in President Barack Obama's economic stimulus plans, saying the new administration's proposals are reminiscent of those in play in March 1933, when Franklin Delano Roosevelt took office at the height of the Great Depression.
"The most significant piece of legislation in the next few weeks will be the fiscal stimulus program," said Jeffrey Kleintop, chief market strategist, LPL Financial. "It may bolster confidence in the economy and markets or it may fall short and disappoint the market by not being put to work quickly enough."
During the first 100 days of FDR's term, the stock market climbed about 80%. Whether history repeats itself remains to be seen.
"Obama received a rough welcome from the markets yesterday despite the excitement and optimism surrounding the inauguration," said Bill Stone, chief investment strategist, PNC Wealth Management, PNC Institutional Investment Group.
"Those hoping for the 15% gain that welcomed [FDR] in 1933 were certainly disappointed," he said. "But the weakness likely has less to do with the president than with the continued uncertainty around two major issues: economic weakness and the financial sector."
...
"Right now we're waiting to hear if Tim Geithner is approved (as Treasury Secretary)," said Marc Groz, founder and chief investment officer of Topos LLC. "If he isn't confirmed, then we're back into 'who's in charge here.' Whatever people think of Geithner's record and capabilities, he's a known quantity. Collectively the market does not want to have more uncertainty." .