A lot of commentaries have compared Obama’s economic challenges to those facing Franklin Roosevelt when he took office in 1933. Clearly, President Obama faces some major hurdles. The probability of a major economic collapse has been estimated at around 20%, although in recent weeks at least, the future seems to have brightened a bit.

While Obama could see a major collapse, when Franklin Roosevelt took office the collapse had already occurred. In 1933, the American economy was in an absolutely disastrous condition. The New York Stock Exchange had suspended trading and the Chicago Board of Trade had closed. Banks were shut down in thirty-four states. The official unemployment rate among non-farm workers was 37 percent, although it was probably much higher. In cities such as Toledo unemployment was 80 percent. People who had put their savings in banks that closed were wiped out. Sixteen millions jobs had disappeared along with the entire savings of millions of Americans In 1933 journalist Earle Looker stated that “Capitalism itself was at the point of dissolution.”

Every private investor’s portfolio should contain some international stocks; in fact most portfolios should have a lot of foreign stocks. Also, most well diversified portfolios should contain some financial stocks.

Diamond Offshore Drilling (DO) appears to have a promising future which institutions have recognized. They own almost 96% of the stock. Individual investors, however, are yet to spot the company.