Obama’s Nasty Effect on Pharmaceutical Companies
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Some of the most solid opportunities in the stock market are those that happen because of politics. Let’s face it, the government controls billions of dollars and could make or break industries. The effect an Obama presidency could have on Pharmaceutical companies is one you should be well aware of.
As many of you may know, Barack Obama (and democrats in general) is in favor of importing medicines from overseas, allowing the government to negotiate lower prices with drug companies, and increasing the use of generics. Sounds good for us, but not for big pharmaceutical companies.
First, if the use of generics increases, that means big pharmaceutical companies will make less sales. Second, drug companies charge Americans up to two times more for medicine than European or Canadians. If they have to cut those profits in half because the U.S. negotiated lower prices, that means they receive less profits. If they receive fewer profits you can be sure that their stock prices will fall.
So do yourself a favor and stay away from pharmaceutical companies until after November 11.
Source: Obama’s Nasty Effect on Pharmaceutical Companies
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Tags: Charles Delvalle, US electionsAbout the Author
Charles Delvalle is a self-taught market-timing professional and value analyst who uses a combination of technical indicators and fundamental research to achieve consistent gains on stocks, commodities and options.
Charles is also a staunch contrarian and takes pride in finding undervalued sectors and discovering great companies on the cheap. He questions government reports and the status quo. In addition to swing trading options, Charles is also Co-Editor of the monthly advisory service - INCOME.
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