The Weekly View: Looking Beyond the Election
Comment of the Day

October 11 2012

Commentary by David Fuller

The Weekly View: Looking Beyond the Election

My thanks to Rod Smyth, Bill Ryder and Ken Liu for their excellent strategy letter. Here is a brief sample:
With respect to the elections, an Obama win would likely be negative for energy stocks, as the president has repeatedly threatened to raise taxes on energy companies and would try to eliminate some favourable accounting treatments that have also helped their earnings. Multinational corporations could see their tax rates increase. ISI Group pointed out that hospital stocks have rallied when Obama's chances improved in opinion polls and HMOs have sold off. If Romney wins, hospitals and Medicaid HMOs would be hurt by the repeal of the Affordable Care Act (ACA). Defense would likely do better under Romney than Obama, though funding increases are unlikely.

David Fuller's view We now have an exciting Presidential Election horse race following the first debate and what looks increasingly like an initial White House cover-up over the Benghazi attack on the US consulate. This is now the subject of a heated committee hearing conducted by the House of Representatives.

Subscribers may be interested in the DJIA versus Political Power graphic in The Weekly View.

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