Did Obama Say in 2009 That It Was a Good Time to Buy Stocks at SPX 666?

Introduction

The claim in question suggests that President Barack Obama stated in 2009 that it was a good time to buy stocks when the S&P 500 index (SPX) reached a low of 666. This assertion has gained traction as a notable moment in financial history, particularly given that the S&P 500 hit this intraday low on March 6, 2009, during the depths of the financial crisis. This article will explore the context of Obama's statements around that time and evaluate the evidence surrounding this claim.

What We Know

1. Context of the Financial Crisis: The S&P 500 reached an intraday low of 666.79 on March 6, 2009, amidst a severe economic downturn following the 2007-2008 financial crisis, which had seen stock prices plummet by nearly 40% in the previous year 16.

2. Obama's Statements: On March 3, 2009, just days before the S&P 500 hit its low, Obama made remarks suggesting that long-term investors should consider buying stocks, stating, "Unless you think Depression 2.0 is under way, if you are a long-term investor, the goal is to buy value on the cheap and now is a good time to do it" 23. This statement indicates a belief that the market was undervalued at that time.

3. Market Recovery: Following this period, the stock market began a significant recovery, with the S&P 500 eventually reaching new highs in the years that followed. This recovery has been cited as evidence of the wisdom of investing during downturns 58.

Analysis

Source Evaluation

• Business Insider: This outlet has published multiple articles discussing Obama's stock market call, often framing it as one of the greatest market predictions. While Business Insider is a well-known financial news source, it has been criticized for sensationalism in its headlines and articles, which may introduce bias 1610.

• Politico: The Politico article provides a direct quote from Obama and contextualizes his remarks within the broader economic environment. Politico is generally considered a reliable source for political news, but it may have a slight bias depending on the political leanings of its readership 2.

• Yahoo Finance: This source also discusses Obama's statements and the subsequent market recovery. Yahoo Finance is a reputable platform for financial news, but it may cater to a more general audience, which can affect the depth of analysis provided 38.

• A Wealth of Common Sense: This blog offers a retrospective analysis of the market's performance post-2009 and discusses the implications of investing during downturns. While it provides valuable insights, it is essential to consider the author's background and potential biases 5.

Methodological Considerations

The claim that Obama explicitly stated it was a good time to buy stocks at SPX 666 is somewhat misleading. While he did encourage long-term investment during a market downturn, the specific reference to the S&P 500's low of 666 is not directly quoted in the available sources. This lack of specificity raises questions about the accuracy of the claim as it pertains to the exact wording used by Obama.

Conflicts of Interest

Some sources may have a vested interest in promoting the narrative of Obama's economic acumen, particularly those that align with a more favorable view of his presidency. This potential bias should be taken into account when evaluating the reliability of the claims made about his statements.

What Additional Information Would Be Helpful?

To further clarify the claim, it would be beneficial to locate a transcript or video of Obama's March 3, 2009, remarks. This would provide direct evidence of his statements and allow for a more accurate assessment of whether he specifically referenced the S&P 500's low of 666. Additionally, insights from economic analysts or historians regarding the context of Obama's comments and the market conditions at that time would enhance understanding.

Conclusion

Verdict: Misleading

The claim that President Obama explicitly stated it was a good time to buy stocks at SPX 666 is misleading. While he did encourage long-term investors to consider purchasing stocks during a market downturn, his remarks did not specifically reference the S&P 500's low of 666. This lack of direct quotation raises doubts about the accuracy of the assertion.

It is important to note that while Obama's comments were made in the context of a significant market decline, the interpretation of his statements as a direct endorsement of buying at that specific index level lacks substantiation. The available evidence does not provide a clear, direct link between his words and the specific claim being made.

Readers should be aware that the interpretation of political statements can be influenced by various biases, and the context in which they are made is crucial for understanding their implications. Additionally, the evidence available is limited, and further verification through primary sources would be necessary for a more definitive conclusion.

As always, it is advisable for readers to critically evaluate information and consider multiple perspectives before forming conclusions.

Sources

1. Business Insider. "Obama: Buying Stocks Potentially Good Deal March 2009." Link
2. Politico. "Obama: Buy stocks now." Link
3. Yahoo Finance. "President Obama made one of history's greatest stock market calls in 2009." Link
4. Business Insider. "Obama: Buying Stocks Potentially Good Deal March 2009." Link
5. A Wealth of Common Sense. "An Ode to March 9, 2009." Link
6. Business Insider. "Obama Makes One of Greatest Stock Market Calls Ever." Link
7. Business Insider. "Obama made one of history's greatest stock market calls 9 years ago." Link
8. Yahoo Finance. "Obama made one of history's greatest stock market calls 8 years ago." Link
9. MarketWatch. "Obama's 'predictably irrational' economic policies." Link
10. Business Insider. "Obama Makes One of Greatest Stock Market Calls Ever." Link