The Big Man is speaking tomorrow night. As a trader, we generally don’t care what the President says. Rarely does anything ever come out of a State of the Union address. We tend to pay more attention to Federal Reserve Bank governors.
Traders are inherently distrustful of all politicians. Why? Because in general they are full of BS. One example. Before the election in 2008, I went to a small meeting with Senator Tom Harkin of Iowa. Harkin gave his speech, politely answered some questions and then shook hands with everyone. When I met him, I said, “Senator, I work on the floor of the Chicago Mercantile Exchange, we sure do appreciate your support.” I had previously met the Senator at the exchange. I didn’t expect him to remember me, but I wanted to plant the seed anyway. “He said, Oh Yes, the CME has been a big supporter of mine over the years. Sure do appreciate it.” I smiled and said, “Yessir Senator. Just want to let you know we are around, and appreciate that you have fought transaction taxes all these years.”
Senator Harkin introduced a transaction tax in the Senate this year. If you live in Iowa, I hope you don’t support him and I hope he loses his next election. I bet he really doesn’t like the Cubs either.
So no matter what Obama says tomorrow, he will be fibbing. (And White Sox fans hate fibbing)