Monday, December 22, 2008

Obamanomics for Investors

By Rob Viglione

The federal government has never had as large a role in the economy as it now does. Barack Obama will have more power to influence markets than any other leader in history. He is coming to power during a massive recession, as housing prices and markets crumble, and the federal government is printing money like crazy to try to pay its bills.

Boomberg News reports that total federal commitments to financial rescue efforts have ballooned to $8.5 trillion. Despite this enormous transfer of wealth, Obama recently announced another $1 trillion stimulus package he intends to push when he assumes the presidency.

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.

Government policies affect all areas of the economy, starting with our currency, interest rates, and the money supply. At a fundamental level, policy creates winners and losers. Companies that benefit from policy prosper at the expense of those who do not, but are charged with subsidizing the rest through taxes. My book, "Obamanomics: A Guide to Investing Over the Next Administration" gives specific strategies on how to protect your assets and make money on policies we know Obama intends to pursue.

The book discusses how Obama's policies will influence specific areas of the economy, and how you can profit from it. For instance, Obama is strongly pro-union and will push legislation that benefits organized labor, and union heavy industries. Think automotive, airline, and steel, to name a few. Additionally, stay clear of war profiteers, as cash flows dry up with America's draw down in Iraq. Look for "green" companies that will benefit from the quest for clean energy and a carbon cap-and-trade program.

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! - 16928

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