Obama’s First Year in Office – Monthly Predictions

As I had predicted back in December 2007, Obama became the 44th president of the United States. The question now is how well can he do in his new job. Can he rise up to the challenges facing him and the country? Will his legacy be more like that of Jimmy Carter or Ronald Reagan? Or simply, is he up to the job?

Obama will succeed in his job but not easily. We already have seen bold proposals as well as significant missteps within his first 50 days in office. The rest of the year brings many successes and many failures. At this time, the luck of the United States as well as that of the US stock market is tied closely to Obama’s luck. The US stock market will move up when Obama’s luck is on upswing and vice versa. Obama’s luck is good in months of April, July, and August. Stock market will be on upswing in these months. On the other hand, months of June, October, and November bring bad luck for Obama resulting in major downturns in the US stock market in those months.

March 2009 (March 5 – April 3)

The first half of the month spells bad luck for Obama and he will encounter many obstacles. His luck improves in the second half of the month. Many unexpected positive events, albeit small, will help him in the second half of the month. The month will end with upswing in the US stock market.

April 2009 (April 3 – May 4)

This month is an excellent month for Obama. He will modify some of his plans that faced opposition previously. Many of his plans will show signs of success. Economy will show additional signs of recovery. Many of the problems of the past months will disappear. Sentiment of investing community shows improved confidence in Obama’s ability which cause DJI turn up and become bullish. Some financial institutions will report lesser losses and even profitability.

May 2009 (May 5 – June 4)

The first half of this month is OK for Obama but not the second half. Obama will travel overseas to a number of world leaders and allies during this month. Unfortunately for him, this trip will mostly be a failure. In this month, his inexperience shows through in his actions and invites public opposition. US stock markets go down later in the month.

June 2009 (June 5 – July 6)

This is one of the worst months for Obama. Obama is overconfident on his skills and makes grandiose decisions. Most of these decisions would turn out to be wrong. Everything would seem to go wrong for him. US stock markets would crash dramatically.

July 2009 (July 7 – August 6)

This is the best month of the year for Obama. His luck suddenly turns up. He realizes mistakes made in the last month and starts course correction. As things start to smooth out, the previous month begins to look like a bad memory. He gains public confidence resulting in a positive mood for the stock market. Dow recovers to 9,000-10,000.

August 2009 (August 7 – September 6)

Obama’s luck continues to be great in this month. Everything seems to go smoothly for him. Many companies begin to show better performance resulting in a mad rush to buy stocks. Housing sales improve but not their prices.

September 2009 (September 7 – October 7)

Obama thinks that he has successfully overcome the difficult period and becomes careless. His luck moves downward in the third week. US stock market sees short term peak in the second week of this month but soon takes a nose dive. Several major companies fail and bring the stock market down with them.

October 2009 (October 8 – November 6)

This month spells big trouble for Obama. He is perceived to be arrogant. US loses support of key allies and likely to enter into trade war with Russia, Korea, and China. This month shows the first signs of drop in real estate prices in China. Asian stocks drop dramatically followed by a smaller drop in US stocks.

November 2009 (November 7 – December 6)

Obama’s luck continues to worsen in this month. Trade relations are further strained as nuclear proliferation issues begin to surface. Obama encounters disagreements from inside and outside of the nation. Dow drops led by housing and bank stocks.

December 2009 (December 7 – January 4)

This month brings better luck for Obama. Conflicts and tensions begin to resolve. US stock market also recovers.

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