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.
With such tremendous money transfers it is more important now than ever to understand how government policy affects your portfolio. In effect, these policies strip wealth from taxpayers and redistribute it to political beneficiaries.
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.
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!
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.
With such tremendous money transfers it is more important now than ever to understand how government policy affects your portfolio. In effect, these policies strip wealth from taxpayers and redistribute it to political beneficiaries.
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.
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!
About the Author:
Rob Viglione is a author, hedge fund manager, financial expert, and real estate broker. He is General Partner and managing director of Viglione & Partners Assurance Group, L.P., a derivatives trading fund specializing in market-neutral options strategies. Read his latest book, Obamanomics: A Guide to Investing Over the Next Administration
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