How Obamanomics will Impact your Portfolio
Barack Obama has the power to influence markets more than any other president. Government has never been as large or involved in the economy as it now is, and Barack Obama is proposing unprecedented policy initiatives that will make it even more so. On top of this, markets are crashing-real estate has plummeted, stocks have been obliterated, and our currency is becoming worthless.
According to Bloomberg News the cumulative federal commitment to financial rescue initiatives has reached an astounding $8.5 trillion. Additionally, Obama announced last week a fiscal stimulus package totaling $1 trillion over the next year.
The sheer size of these wealth transfers is insane. This is why government policy drives markets now more than ever, and understanding these activities is crucial to safeguarding your financial well-being.
Government policies affect all areas of the economy, starting with our currency, interest rates, and the money supply. At a fundamental level, policy creates winners and losers. Companies that benefit from policy prosper at the expense of those who do not, but are charged with subsidizing the rest through taxes. My book, “Obamanomics: A Guide to Investing Over the Next Administration” gives specific strategies on how to protect your assets and make money on policies we know Obama intends to pursue.
Expect union-heavy industries-like automotive, airline, and steel-to prosper as taxpayers assume the burden of employee health care and trade policy changes to protect domestic businesses. Stay away from the defense industry as both the War in Iraq scales down and long-term acquisition programs are cut. But look towards “green” businesses, carbon-efficient utilities that will benefit from cap-and-trade emissions regulation, and alternative sources of energy that will have wind-fall piles of cash thrown their way.
Obama’s policies are well known, so now is the time to start considering how they will impact markets and your portfolio. Read my book and visit www.learnobamanomics.com to stay on top of new policy direction. Don’t let yourself get caught on the wrong side of the policy game!