Now that Barack Obama is President-elect, we need to start to look at the future of business and how we might be able to make money in an Obama presidency. Overall an Obama presidency will up prove to be good for business and Wall Street. While some industries will see changes in regulation which will lower their profits, other industries will find huge booms. These are the industries that you will want to have at least some investments in your portfolio.
Alternative energy: Expect to see very large growth in this industry. Solar energy is going to be a very big winner. Companies that produce solar panels are going to be very successful. Engineers, marketers and general laborers will see large job growth in alternative energy. Tidal Energy technologies and wind power companies are going to find a way to get connected to the grid, which will turn these companies into huge profit centers. Alternative energies will be put in our cars, homes and businesses. Alternative energy could very well be the next gold rush.
Generic drugs: A Democratically led congress will most likely introduce new legislation that will allow government medical programs to negotiate with drug companies. This will increase the number sales in companies that provide cheaper generic versions of the name brand drugs currently purchased for government programs. A portfolio that includes generic drug companies will see huge growth.
Education financing: Creditors are not borrowing now but that will change under President Obama. New
technologies and government service/education programs will increase attendance in colleges nationwide. Loans for education will increase and these companies will see profits, making them a good investment. Gov’t bonds for education will also be a good, steady investment though bonds will give lower returns.
General construction: There will be construction jobs back in America! Homes and businesses will be built in the regions where alternative energy will see a boom. We will also see construction jobs in roads and schools. Construction companies in your portfolio will surely see gains in 2009/10. If you’re not an investor this is also a great job growth opportunity. We can expect to see new construction in communities nationwide.
Small business: Small businesses will do very well now that Obama has been elected. Not only will most small businesses’ tax burden be lowered, but loans will finally be made available again. Under the Bush administration the Small Business Association gave loans to large corporations rather than small businesses. As part of the Obama Administration, the Small Business Association will once again be working for the small business. Along with loans being made available, you can also expect to see less obstacles in the loan process. Most small businesses will never take out a loan, but they will see large sales and profits. Because small businesses historically put money back into the community, you will see a rise in community wealth altogether. If you have a small business or are thinking of opening a small business an Obama presidency is going to be on your side. These will be better years for small businesses then we saw in the Clinton years.
Not everyone will be a winner, there will be companies that see more regulation and restrictions. They will still be able to make profits just less than they were making under a Bush administration. Industries with tightening profits will be:
HMOs: Insurance companies have been playing games like refusing to pay the bills of some very sick Americans. They’ve also spent some of the most money lobbying Congress in the past eight years. We will start to see more patient friendly legislation come out of the new Congress. Legislation that President Obama is sure to sign.
Big Pharma: Large pharmaceutical companies are going to lose their high priced sales to Medicaid and Medicare. Government medical companies will now be able to negotiate with these companies to get lower prices on new drugs that don’t have a generic equivalent. You can expect to hear a lot of complaining from this industry but it will be better overall for the taxpayer.
Hospitals: We can expect to see more regulation in the hospital industry. Hospitals are dumping patients, letting patients die in their waiting rooms and giving inadequate care. Hospitals aren’t going to be big losers though. One of the biggest complaints from hospitals these days is nonpaying patients. If we get some sort of government healthcare for all Americans enacted, hospitals will get paid for the patients that come in their doors. Overall patients will win the most from an Obama presidency but hospitals won’t do too bad.
Defense: Fighting two wars costs a lot of money, but it brings a lot of profit. Defense spending gone through the roof with no bid contracts and we will see this curbed in the future. This is money that will be switched to America’s infrastructure. Your portfolio will probably make much more profit if you also concentrate on America’s infrastructure rather than on war companies.
Banking: We can definitely expect to see more regulation in the banking industry. As senator, Obama already saw the problems that deregulation was going to bring. We can expect to see Congress and President Obama move quickly to bring more regulation to banks. The health of American Banks not only affects the American economy but it effects the world’s economy. He quickly jumped on the economy melt down that happen during his campaign. He will also be sure to jump quickly on the problem when he steps into the White House. We will also of the changes in home loan regulation as well as credit card regulation. CEO pay legislation may also be written sending more profits to investor’s dividends.
There are a lot of investment opportunities now that Obama has been elected President. Keep your eyes open. Study the industries that Congress and the new President discuss publicly, and you will be able to make money under an Obama presidency.