Investing for the Future
Although it is difficult to know what President Obama will do in his second term, it is possible to observe what he did in his first term to determine the best investments. Since the GM bond investors were forced to trade their bonds for stock, you may want to avoid the bond market. The following suggestions are for your consideration. You should consult with advisors like Bell Financial Advisors for specific advice.
Gold and Silver Coins
Since the treasury is buying our debt with printed money, the dollar may become worthless sometime in the near future. As the money supply increases, you will need an investment that will increase as your dollar decreases. Gold and silver, with other precious metals, will be a good inflation hedge. Buying the smaller coins will give you the opportunity to use them locally as they are needed, or you can sell them in small amounts.
The aging population will need more health care facilities and pharmaceuticals. Since everyone will be required to purchase health insurance, any phase of the health care industry should be profitable during the next four years. Johnson & Johnson, Pfizer and other pharmaceutical companies should continue to do well during President Obama’s second term.
Since President Obama has been investing in renewable energy throughout his first term, you can expect him to continue investing during his second term. However, it may be many years before clean energy shows a profit. In the meantime, fossil fuels continue to earn profits. Exxon-Mobil and Chevron should maintain steady growth in foreign countries if they are suppressed by high taxes in the United States.
Education and Construction
President Obama’s stimulus packages always involve education and infrastructure construction. Therefore, you can expect any stimulus package during the second term to include education and construction. Stocks in construction companies, education institutions and suppliers may yield a quick profit.
The Obama administration wanted to control the Internet during the first term. He will probably push for control during his second term; therefore, AT&T, Microsoft, Google, Apple and others should continue to do well during the next four years.
Wal*Mart has always been a good investment because the management is constantly seeking ways to expand. They should do well during the second term due to their entrepreneurial skills.