Barak Obama’s Impact on the Stock Market
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Kelly Parks asked:
I’m not very political nor American, but how the US presidential race is shaping up could really affect all us investors. Republican John McCain looks like he is losing on most fronts and we could see Barack Obama as the new President of the United States. Barack Obama has been quite vocal about his tax and alternative energy stance and this could shake the market right up.
As of right now tax on dividends is only 15% and with Obama looking to raise this to 39.6% we could see a sell off of high yielding stocks. If that wasn’t bad enough Obama is also looking to raise the capital gains tax, making it harder for people to make money from investing in the stock market. Obama has also promised a “Robin Hood” tactic by taxing lower income earners less and higher income owners a lot more. In some cases someone making a 150,000$ dollars a year will be taxed 7% more.
Can America afford all these taxes, especially with the mess already in the financial markets already? People are losing their homes left right and center and Obama is looking to create a tax on selling your home at 28%.
The problem with this, not only for investors but for everyone in America, is that this will not solve the deficit problem at all! In the US currently 38% of all households pay no tax at all. With Obama’s new tax plan this would be up to 50%. If half of America is paying no tax, the economy could be in for a rocky ride even longer. What Obama has proposed is nothing more than a wealth transfer, or an attempt at one anyway.
On election day I will be looking for falling stocks to pick off! Although there is a big push for alternative energy I’m realistic oil is not going to get pushed out anytime soon, even if Obama is against drilling more and with the pull out of Iraq I would be watching both “Lockheed Martin” and “Halliburton” for some crazy lows.
Visa and Mastercard could pull back with Obama’s tough stance on credit card companies that are making too much money.
Look for the opportunities out there!
Kelly Parks
www.wealthforinvestors.com
Ben
I’m not very political nor American, but how the US presidential race is shaping up could really affect all us investors. Republican John McCain looks like he is losing on most fronts and we could see Barack Obama as the new President of the United States. Barack Obama has been quite vocal about his tax and alternative energy stance and this could shake the market right up.
As of right now tax on dividends is only 15% and with Obama looking to raise this to 39.6% we could see a sell off of high yielding stocks. If that wasn’t bad enough Obama is also looking to raise the capital gains tax, making it harder for people to make money from investing in the stock market. Obama has also promised a “Robin Hood” tactic by taxing lower income earners less and higher income owners a lot more. In some cases someone making a 150,000$ dollars a year will be taxed 7% more.
Can America afford all these taxes, especially with the mess already in the financial markets already? People are losing their homes left right and center and Obama is looking to create a tax on selling your home at 28%.
The problem with this, not only for investors but for everyone in America, is that this will not solve the deficit problem at all! In the US currently 38% of all households pay no tax at all. With Obama’s new tax plan this would be up to 50%. If half of America is paying no tax, the economy could be in for a rocky ride even longer. What Obama has proposed is nothing more than a wealth transfer, or an attempt at one anyway.
On election day I will be looking for falling stocks to pick off! Although there is a big push for alternative energy I’m realistic oil is not going to get pushed out anytime soon, even if Obama is against drilling more and with the pull out of Iraq I would be watching both “Lockheed Martin” and “Halliburton” for some crazy lows.
Visa and Mastercard could pull back with Obama’s tough stance on credit card companies that are making too much money.
Look for the opportunities out there!
Kelly Parks
www.wealthforinvestors.com
Ben
