Folks are getting the change they voted for.  BO now has the distinction 
of owning the worst stock market drop in history for a president during 
his first 30 days in office and the bottom is not in sight.

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http://www.bloomberg.com/apps/news?pid=washingtonstory&sid=aGJ_.gr_awkY

‘Obama Bear Market’ Punishes Investors as Dow Slumps (Update3) 

By Eric Martin

March 6 (Bloomberg) -- President Barack Obama now has the distinction of 
presiding over his own bear market. 

The Dow Jones Industrial Average fell 20 percent since Inauguration Day 
through yesterday, the fastest drop under a newly elected president in 
at least 90 years, according to data compiled by Bloomberg. The gauge 
lost 53 percent from its October 2007 record of 14,164.53, slipping 4.1 
percent to 6,594.44 yesterday. 

More than $1.6 trillion was erased from U.S. equities since Jan. 20 as 
mounting bank losses and rising unemployment convinced investors the 
recession is getting worse. The president is in danger of breaking a 
pattern in which the Dow rallied 9.8 percent on average in the 12 months 
after a Democrat captured the White House, according to data compiled by 
Bloomberg. 

“People thought there would be a brief Obama rally, and that hasn’t 
happened,” said Uri Landesman, who oversees about $2.5 billion at ING 
Groep NV’s asset management unit in New York. “It speaks to the carnage 
that’s in the economy and the lack of confidence in the measures that 
have been announced.” 

A bear market is defined as a decline of 20 percent or more. 

Buying shares “is a potentially good deal” for long-term investors, 
Obama said March 3. He compared daily fluctuations to a tracking poll in 
politics and said he wouldn’t adjust his policies just to meet market 
expectations. 

Congress last month enacted Obama’s $787 billion package of tax cuts and 
spending on roads, bridges and public buildings. His 2010 budget 
indicated the government’s financial rescue may need another $750 
billion after an initial $700 billion. 

Getting Cheaper 

The Dow average dropped 31 percent since Obama’s election through 
yesterday. The 30-stock gauge traded at 8.04 times annual earnings, the 
cheapest since 1995 and down from 10.06 times on Inauguration Day. 

Citigroup Inc. led the plunge, losing 71 percent. The government 
proposed taking a 36 percent stake in the New York- based bank, cutting 
the percentage owned by shareholders. Detroit-based General Motors Corp. 
tumbled 53 percent after the largest U.S. automaker said it needs more 
government aid. 

“It’s the Obama bear market,” said Dan Veru, who helps oversee $2.8 
billion at Palisade Capital Management in Fort Lee, New Jersey. “We 
don’t know what the rules are in so many different areas the government 
is touching.” 

The Dow average today gained 32.50 points, or 0.5 percent, to 6,626.94. 

Bank Losses 

The U.S. economy contracted at a 6.2 percent annual rate in the fourth 
quarter, the most since 1982, the Commerce Department said last week. 
Unemployment jumped to 7.6 percent in January, the highest since 1992, 
as Americans fell behind on their mortgages and banks seized homes at a 
record pace. 

Losses at financial companies worldwide that grew to about $1.2 trillion 
sent the Standard & Poor’s 500 Index to a 38 percent retreat last year, 
the steepest since 1937. 

“Prospects for recovery in the financial sector, despite all the 
government help, still seem rather remote,” said John Carey, who manages 
about $8 billion at Pioneer Investment Management in Boston. “We’ve had 
a weak economy for a couple of years, and we aren’t seeing the stimulus 
working at this point. That is what weighs on investors’ minds.” 

The Dow average took eight months to decline 20 percent following the 
inauguration of George W. Bush, reaching the level on Sept. 20, 2001, 
nine days after terrorists attacked the World Trade Center in New York 
and the Pentagon in Washington. 

Herbert Hoover 

The crash of 1929 occurred seven months into the administration of 
Herbert Hoover, who presided over an 89 percent plunge in the Dow 
between September 1929 and July 1932, the steepest retreat ever. 

Only twice has the benchmark gauge slipped in the 12 months after the 
election of a Democratic president since 1900, after Woodrow Wilson’s 
victory in 1912 and Jimmy Carter’s in 1976. 

The Dow entered its most recent bear market on July 2, 2008, when a 167-
point decrease gave it a 20 percent loss from its record 14,164.53 on 
Oct. 9, 2007. Unlike the Standard & Poor’s 500 Index, the Dow’s rally 
from its November low of 7,552.29 fell short of a 20 percent bull market 
gain, ending at 19.6 percent. 

“Obama should be listening to the stock market more than talking to it,” 
said Kenneth Fisher, the billionaire chairman of Woodside, California-
based Fisher Investments Inc., which oversees $22 billion. “He hasn’t 
gotten out of the gate well.” 

To contact the reporter on this story: Eric Martin in New York at 
emartin21{at}bloomberg.net . 

CMPQwk 1.42-21 9999 
Stop the Democrat party oil embargo ....

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