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:
VIDEO ON MSN MONEY
Conservative blogs are literally on fire over alleged comments made by Valerie Jarrett, a senior adviser to President Obama and one of his closest friends, who was recently addressing other Obama senior staffers…"After we win this election, it’s our turn. Payback time.
Everyone not with us is against us and they better be ready because we don’t forget. The ones who helped us will be rewarded, the ones who opposed us will get what they deserve."
Jarrett’s alarming rant continued…"There is going to be hell to pay. Congress won’t be a problem for us this time. No election to worry about after this is over and we have two judges ready to go." Valerie Jarrett’s comments are a chilling forecast of things to come for conservatives and people of faith now Obama is given another four years in the White House!
WHAT ELSE HAS TO BE SAID TO ALERT AMERICANS TO THE REAL STATE OF AMERICA ! ! !
In response to Dumb Blonde, I mean Natural blonde.....what job growth?? what racism??
If Obama was white and a Repub Fox would say he`s the greatest Pres even.It`s hard for white folks
to admit Obama is a lot smarter than they are.How could people support a corporate raider like
Romney?The world is changing and black people are getting a chance at jobs and positions
that only white people had a shot at.Romney couldn`t even win his home state because they
knew his track record.When guys like Romney export your job and rake the profits away maybe
you`ll wake up.After 32 months of job growth you should have learned the winner is Obama.
"The Fed stands as the only source of policy support for a burdened by 7.9 percent unemployment after the presidential election preserved the balance of power between Democrats and Republicans. “If you’re going to get stimulus, it’s got to come from the Fed,” said Paul Edelstein, the director of financial economics at IHS Global Insight in Lexington, MA. “They’re the only game in town.”
If you notice... media and money are only asking media and money for answers the rest of us demand answers to. Only game in town? Later in the article it refers to Janice Yellin as the ONLY choice to replace Bernanke. Contemplate this... Close the banks, end the Federal Reserve and get RID of Wall Street. What's the alternative then? It's YOU and ME. It's investing in what you can do or know and helping it recover. What it is NOT, is this constant resort to "only" and "no choice" or "no voice". I have a voice. It's right here when Microsoft's Nazis aren't trying to censor me. We will not have a New World Order. We will have FREEDOM and people who think they know it all will put their money where their mouths are and SOME WILL LOSE IT. That's Reality. This New World Order crap is not.
Everybody ready for the new ride at barry world?
Hang on!....going down!....weeeeeeeeeeeeeeee!
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[BRIEFING.COM] The stock market capped the trading week with losses across the major averages. The S&P 500 fell 0.5% to surrender its weekly gain, while the Dow Jones Industrial Average (-0.7%) and Russell 2000 (-0.9%) underperformed. The two indices posted respective losses of 0.8% and 0.6% for the week.
Equity indices were pressured from the get-go after several heavyweights disappointed the market with their earnings and/or guidance, which led to some broader profit-taking. After ... More
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