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 magnitude of these cash flows is enormous. Policy drives markets now more than ever. The larger the role government plays in the economy the more imperative it is to understand how policies affect investments.
At the macro level, federal policies affect the dollar, interest rates, and growth or contraction of the money supply, i.e. inflation or deflation. At a lower level, direct transfers of wealth benefit the companies that are on the receiving end, and harm those from whom profits were taken. “Obamanomics: A Guide to Investing Over the Next Administration” (www.learnobamanomics.com/book) helps you understand exactly how Obama’s policies will affect your portfolio.
The book discusses how Obama’s policies will influence specific areas of the economy, and how you can profit from it. For instance, Obama is strongly pro-union and will push legislation that benefits organized labor, and union heavy industries. Think automotive, airline, and steel, to name a few. Additionally, stay clear of war profiteers, as cash flows dry up with America’s draw down in Iraq. Look for “green” companies that will benefit from the quest for clean energy and a carbon cap-and-trade program.
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!
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