The great news of the death of Osama Bin Laden when I woke up this morning was met with a smile on my face and US stock futures pointing higher.
The smile remains, but the higher stock prices do not. Why??
Well as great of a day as it was for Americans and everyone fighting terror around the world, the death of one menace to democracy will not cure the issues governments are facing. The US unemployment rate will not fall, the rising price of food will not come down, and Microsoft's earnings will not rise based on the death of OBL.
What the death may do is spur some confidence into the American people during a time of high unemployment and rising costs of living. But what it will not do is push the stock market higher.
I have said for over a year that the real catalyst to a long-term rally in stocks and the US economy is confidence. This confidence will come from more jobs and politicians showing the American people they are here for us and not their own agendas. The OBL Death Confidence boost will be temporary as the War on Terror will rage on for a long time, unfortunately.
So I will sit back today and smile as I am proud to be an American and support our troops, but I am also a realistic and believe the death of OBL is irrelevant when talking about stocks. AND, to all the so-called "experts" that are calling for a Osama Rally, you should be ashamed of yourself for such a irresponsible call.
Market expert and TV personality Matt McCall blogs about what is really moving the markets. He will emphasize Exchange-Traded Funds (ETFs) and individual stocks throughout the trading day.
