Our 7 Best Ideas for Profiting from the Presidential Election
As this heated election nears conclusion, one thing is for certain: It's hard to separate the lies from the truth. However, one truth remains undeniable... The challenges our country faces also present challenges for individual investors. Whether we're talking about the "fiscal cliff," corporate taxes, dividend taxes, inflation, energy policy… These are all issues that affect investors -- but they also present opportunities to profit.
We usually try not to get too partisan here at StreetAuthority -- partisanship often leads to questionable investment decisions and missed opportunities. But one simply can't ignore the fact that there will be clear winners and losers on Wall Street depending on who occupies the Oval Office in 2013. And the investment climate will be directly affected by the policies put in place by the next president and Congress.
We've touched on this theme a many times in recent weeks -- and we've also mentioned a few ideas that we think are worth investing in regardless of who's in power. (In fact, as we've shown, we could actually learn a thing or two from politicians when it comes to investing, believe it or not.)
So as we near the conclusion of the election, we've decided to give you a brief summary of all that we've covered in recent weeks. If you're interested in a particular theme or idea, feel free to click on the link, which will take you directly to the article to learn more. After careful consideration, I've put together this list of StreetAuthority's seven best ideas for profiting from the Presidential election.
Take a look...
|1. Obama victory good for gun stocks? Not so much...|
| First, let's dispel with some conventional (read: wrong) thinking. Many think that if Obama wins, that's a good reason to buy shares of gun and ammo manufacturers. Yet, as David Sterman notes in this article, for several reasons, that's just not likely to happen.
|2. So what should you buy if Obama wins?|
|Health care and alternative energy look like good bets, but with some caveats -- according to James Brumley. Meanwhile, he also says we could see the "imminent death of coal" play out under an Obama victory scenario. [Read his article for James' specific picks on these themes.]
|3. And for a Romney victory?|
| Ironically, Brumley says that if Romney wins, some health care stocks will also be a 'buy' -- but it will be an entirely different set than if Obama wins. Other winners? Coal, banks and dividend stocks. Losers in the event of a Romney win would be the Obama health care "winners" mentioned in Brumley's previous article as well as potentially companies that do a lot of business with China. [Read more here.]
|4. The energy picture|
| Energy investors are watching the election closely for obvious reasons, yet some might argue that, aside from Obama's professed love for alternative energy, there is little discernable difference between the two candidates. Except when it comes to offshore drilling. As Michael Vodicka states in this article, a Romney victory would clearly boost the fortunes of offshore drillers that operate in the Gulf of Mexico, as the current White House has been slow to reissue drilling permits in the aftermath of the Deepwater Horizon oil spill.
[Another important note: There's a coming boom in the energy sector that will be so powerful, so undeniable, that neither Obama nor Romney will be able to leave it out of their energy plan. Nathan Slaughter, editor of our Scarcity & Real Wealth newsletter, calls it "the biggest story in energy." I'm talking about the shale oil and gas boom. Nathan has written about how to profit from this story here, here, here, here and here.]
|5. The "Secret Investment Tip" probably missed from the debates|
| While the networks and pundits were engrossed with monitoring dubious things like verbal barbs and body language during the debates, one of our experts was reminded of something that could keep investors from losing their shirts. [Read Michael Vodicka's article about Washington D.C.'s track record of picking losers (and stocks you should avoid).]
|6. The "big government" stock to buy if Obama is elected|
| All of the talk in this election about big government vs. small government led one of our writers to a brilliant idea -- a stock that profits from "big" government (hint: it's not a defense contractor). And surprisingly it helps "big government" become more efficient. I think you'll be surprised to learn what he found.
|7. How to earn "bipartisan profits"|
| How about something we can all agree upon? Whether you intend to vote for him or not, it's clear that Mitt Romney knows how to create a fortune. He's worth an estimated $250 million. What can regular investors learn from him -- and more importantly, do to profit from moves similar to the ones he made? Andy Obermueller, editor of our Game-Changing Stocks newsletter, has the answer in this article.
And let's not forget, making a fortune is a bipartisan game. If you thought Mitt Romney was the only well-known politician who has made a fortune on Wall Street, think again. In fact, Mitt Romney, Bill Clinton... and U2's Bono have all made a fortune with this investment. The door to this exclusive club has been shut to most regular investors for years -- until recently. Again, Andy Obermueller has the details...
StreetAuthority LLC does not hold positions in any securities mentioned in this article.