investor sentiment, but there are so many reasons behind its fluctuations—and, amid crisis, not all of those factors are based on rational decision-making. In the end, Obama should be judged on whether his policies generated jobs, boosted national productivity (GDP), and seeded new industries that put the U.S. on a path of future prosperity.
4. To that end, you can help the president—and the country. How? By saving and investing. For that, I’ll go back to an explanation I cited in my last blog from Ed Fredericks, a professor at Pepperdine University’s Graziadio School of Business: “Right now and in the foreseeable future an increase in savings is good for the country. This will reduce the deficit through lower imports. As imports decline and savings increases, our capital markets should benefit as surplus savings will go into investments [stocks]. This investment capital will go to businesses and entrepreneurs promoting economic activity and strengthen our economy through employment and wages.” Whether your aim is to help Obama “look good” or to get us all out of the economic funk we’re in, it sounds like a win-win to me.
John Simons is the senior personal finance editor at Black Enterprise magazine.