Martin Hutchinson analyses what a Democrat landslide means for investors. He says nuclear and clean energy stocks, auto manufacturers, generic drug producers and muni bonds are a “buy”. But fossil fuel companies and financial institutions should be avoided.
With the election now over, focus will turn back to what ails the economy. And front and center will be the continuing housing crisis. Foreclosure rates keep going up and the $700 billion bailout has yet to spur lending.
The stock market is due a bounce after the election, regardless of who wins. But after that, the voter’s choice will have a big impact on industry winners and losers. Rick Pendergraft says biotech and alternative energy stocks should get a lift under Obama, while defense and oil will benefit from a McCain victory.
The US consumer is on life support. Retail sales cratered in September, and consumer confidence indexes are at rock bottom. Uncle Sam is gearing up for a new New Deal to resuscitate the patient, says Justice Litle. It will focus on alternative energy projects… and could create the next big bubble.
Barack Obama and John McCain are scrambling to respond to the financial crisis on Wall Street. Both are calling for greater oversight and regulation of the banking sector. But neither is inspiring confidence in his ability to deal with the crisis. Few will admit it – and fewer still in Washington – but the answer to the current crisis does not lie in greater regulation. In fact, as Frank Holmes argues in The Daily Reckoning, legislation such as Sarbenes-Oxley is making matters worse…
Presidential hopefuls Barack Obama and John McCain have clashed over the issue of tax reform.
Obama has pledged to introduce a windfall profit tax on oil companies and raise income tax for those earning over $250,000 a year if he wins the White House. McCain favors a lower corporate tax rate (from 35% to 25%) and suspension of fuel taxes during summer. Both seek tax cuts for the middle class.
“Investors should focus their minds around one uncomfortable fact,” says Martin Hutchinson in Money Morning.
