After presenting an economic stimulus plan last week, president-elect Barack Obama is again remarking on the U.S. economy today. Today’s prepared remarks at George Maxon University are designed to sell his plan to the public, and urge acceptance of policies that are likely to cost trillions of dollars. Obama is warning that the U.S. economy is likely to take some time to recover, but without swift action, it is likely to be in even worse shape. Obama’s dire warnings on the economy are having two effects right now in the investing world:
- The stock market is lower.
- The U.S. dollar is falling in currency trading to the euro.
Really, though, it is important to pay attention to what happens after Obama’s inauguration, and how quickly an economic stimulus package is passed by Congress. Additionally, it will be important to guage which way sentiment is leaning with regard to the stock market and the U.S. dollar. Economic indicators will determin directions in a number of investments.
In the meantime, it is worth noting that the U.S. economy is likely to affect offshore investments as well, and continued monetary easing around the globe in an effort to fight the recession is likely to limit your yields from offshore bank accounts.
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