The market was almost even as Obama began his speech. This could not have been a bigger downer. He raised the specter of double digit unemployment, multi-year recession and trillion dollar deficit—–all for years, not just this year. Nothing new, really with this talk or popular thinking. But the timing of the speech is interesting.
This makes me wonder if he had a peek at the Labor Dept jobs numbers to be released tomorrow morning. He has talked this way for a while but the timing of what was billed as a “major” speech makes me nervous. Is he giving us a warning? It is probably remote that Obama actually saw the numbers, I agree, but did someone give him a wink?
In any event, I have bought a starter position in SDS, an ultra-short (2x the move) S&P 500 index ETF. This would provide some downside protection and allows me to hold current stock positions.
