U.S. President Barack Obama spent a few seconds talking about stocks during an interview last week with CNBC’s Steve Liesman.
“My estimation is you’ve got a lot of savvy investors out there,” he said. “You got people who recognise that what goes up can come down as well. I’ll leave it up to them to make determinations about whether valuations and stock prices are too high. I’m more concerned about the day-to-day fundamentals. And if we get those fundamentals right, then I’m pretty confident that we can do very well in the next decade.”
So, that’s not much. But it’s not nothing. Presidents don’t usually talk about stocks.
In a new note to clients, Goldman Sachs’ David Kostin remembers another time Obama talked about stocks. From the note:
Some investors may remember Obama’s previous equity valuation comment from March 3, 2009 when the S&P 500 traded at 696: “On the other hand, what you’re now seeing is profit and earnings ratios are starting to get to the point where buying stocks is a potentially good deal if you’ve got a long-term perspective on it.” Since his observation, the S&P 500 has soared by 185% and this week reached a new all-time high of 1988.
March 3 was six days before the S&P 500 hit an intraday low of 666.
That was a pretty extraordinary call.