11/7/2012 6:30 PM ET|
Obama wins: Where to invest now
There are plenty of opportunities to make money, though some of the choices aren’t obvious.
The stock market loves President Barack Obama. With all its cheating heart, and all its mercenary soul.
More than that, actually -- it adores him. The love story of Wall Street and Obama is a bromance like no other, a man-crush for the ages.
Despite his threats to soak the wealthy for more taxes, despite Fed Chairman Ben Bernanke’s attack on savers, despite even his threat to kill special treatment for dividends, institutional investors have thrown themselves at Obama’s feet as they have not done in the first term of any president in the past century.
Compare that withthe S&P 500’s 13% decline and the Nasdaq 100's 45% wipeout in the first term of his predecessor, George W. Bush; or the mere 25% gain in the first term of conservative icon Ronald Reagan; or even the 60% gain in the halcyon early 1990s in the first term of Bill Clinton.
The staggering advance of the market is probably one of Obama’s greatest accomplishments, and yet, in a rich irony, political sensitivities prevent him from bragging about it.
The beautiful part is that this was not a coincidence, beginner’s luck or a historical fluke.
The administration and the Federal Reserve run by his appointed chairman, Bernanke, have systematically stuffed big banks’ pockets with cash in an unending rescue effort, slashed interest rates to the lowest levels of the past 300 years, diverted senior citizens’ savings to revive the moribund residential construction industry and showered drugmakers and insurers with fresh sources of revenue from his health care overhaul.
Little wonder then that Wall Street couldn’t bear the idea of parting ways with the Obama administration, and thus over the past two months threw an extended tantrum to protest the surprising advancement of GOP challenger Mitt Romney in the polls.
Now that the president has won a second term, you can expect most of the sectors that have benefited from the present administration to keep on rolling. Here are some top prospects:
The Patient Protection and Affordable Care Act, the president’s health care initiative, set out new mandates, subsidies and credits to employers and individuals to increase Americans’ access to health care. Upon its passage in March 2010, investors began boosting the shares of drugmakers, insurance providers and hospitals because they all suddenly had a lot more paying customers, courtesy of the government and taxpayers.
Shares of Pfizer (PFE), for example, had fallen 50% during the eight years of the Bush administration, January 2001 to January 2009. In contrast, its shares are up 70% during the Obama administration, almost in a straight line. Some 64% of the gains in the maker of Viagra, Zoloft and Lipitor have come since Obamacare passed.
Overall, SPDR Health Care Select Sector (XLV), exchange-traded fund, which includes all the health care stocks in the S&P 500, is up 31% since the president’s health-care law passed, versus 27% for the broad market.
More from MarketWatch:
MORE ON MSN MONEY
VIDEO ON MSN MONEY
If you think we're going to survive this, I have a bridge to sell to you. It's simple math. You can't spend more than you take in. Simple. Ask all of the knuckleheads that bought houses they knew they couldn't afford, and now are broke. I'm afraid we're in really deep doo doo this time around.
Wall street like Obama because he keeps dumping billions of dollars into the economy, which in turn goes into those investors pockets. As far as investing? Gold, silver, lead and weapon stocks.
A slim majority of American voters wanted this as seen by the next election, so now they have it. A lot of folks are looking to see what the government can give them, rather than seeing what they could accomplish with a little ambition on their own. Four years from now when the next elections take place, the next Chief Executive will be left with a mess to deal with, so good luck there. How does America erase 20 trillion plus dollars in debt in the future? Government manipulation of statistics used to make the unemployment stats. look better than they really are will eventually catch up to the reality that this is not happening. I doubt the USA will shrink to a point where we are considered a 3rd rate country, but most certainly, our international credit rating will take a few more hits.
I suppose though we will survive because that same middle class, that this administration vows it is improving life for, will simply take the brunt of the bad economic decisions, until they will be considered as poor Americans as well. Foreign cars will continue to outsell domestic ones, because they are cheaper and more reliable. Goods from China will continue to over sell in America, as there is no incentive to buy the more expensive goods produced in our own country.
As a retired citizen, who planned pretty carefully, to be able to survive quite nicely on my retirement income, I have watched that reality continue to slip away.
God Bless America, as divine intervention will surely be needed to right the ship, from the course, my once great country is going down now.
Are you kidding??
Who wants to invest now that Obama has 4 more years, and wants all successful people and businesses to hand over the profits.
The stock market is toast. the seniors have the money, but guess what, we ain't gonna put money in the market now that Obama is on for another 4 years.
Go get the money from the Obama generation. Those that have any money!!!!
Copyright © 2013 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.