The new US financial stimulus package has just been announced under the administration of President Obama and the immediate effect of that is a drop in the stock market as well as a plunge in oil price.
Many find the financial package a little too general with no specific measures to help the current global economic crisis. It is hoped that the plan will stimulate better times ahead. After all, it is a whopping $1 trillion to be spent and surely this money will go towards benefitting the economy. Expectations of the new financial package by Obama has been high, thus a general outline of spending that 1 trillion dollars is probably not meeting the people’s expectations.
Perhaps we should all wait and see, give it a chance to see how that 1 trillion will be spent before we panic and hoard up all the cash from our investments. Speaking of investments, since most asset classes aren’t doing well, what is soaring? Gold!
