Obama and the stock market
With an Obama victory, there are many things to look for in the stock market going forward. First is the fact that democratic presidents have been historically better for the stock market than their republican counterparts. But beyond the issue of political party there are a few industries and ideas to help you become better invested for the next presidency.
First, many political experts and Washington insiders are looking for a second stimulus package for Americans. Led mostly by democrats, a new stimulus package could be quickly passed with Obama as president. Both the House and Senate have a democratic majority. The democrats were unable to take a two thirds part of the Senate, but that would only come to be advantageous to strike down an unlikely veto or to amend the constitution. A second stimulus package would give an instant boost to the stock market but create greater inflation problems. At any rate, expect another stimulus right around inauguration day.
Second, healthcare is going to boom. One of the largest parts to Obama’s campaign was the promise of government benefits to all Americans in the form of affordable insurance and other structures to make healthcare available to the masses. In every part of the healthcare industry from prescription drugs, to corporate hospitals, this sector is going to get a huge boost. When the government does something rarely does it budget, and in this case that should work out in favor of investors.
Next is alternative energy stocks which have been stagnating as of late. Temporarily low oil prices are likely to keep alternative energy stocks off the hottest stocks list but if Obama’s plans go forward we could see huge capital investments from the government into private alternative energy firms. This sector should be watched carefully.
