The Best Candidate For Your Money
All the presidential candidates are running on a platform of bringing change to Washington. But what kind of change will each bring to your wallet?
While Republican victories historically add 2% to stocks, according to a Stanford study, the fastest political money is likely to be made in select sectors. John McCain and Mitt Romney’s promises to stay the course in Iraq could boost defense stocks while healthcare shares could take a hit if Hillary Clinton, Barack Obama or even John McCain is elected as all three likely support Medicare negotiating lower prices with drug companies.
But a Clinton or Obama presidency could be the single largest catalyst for solar stocks outside $100 oil. And since McCain is “greener” than most in his party, solar names could perform well under him, too.
CNBC’s Larry Kudlow said it may be too early still to be certain of which sectors could fare better under different presidents, but looking at the candidates’ core positions on economic issues is often telling enough.
Kudlow favors John McCain, saying his “Reaganesque” beliefs in lower taxes, lower federal spending and lower capital gains put him in the best position to lead the economy. But he said he was also impressed with Barack Obama’s positions on key economic issues and even said he believes Hillary Clinton is “tough and resilient.”
But presidential politics are almost entirely situational, according to Kudlow. Americans can parse through the candidates’ positions all they want but so much can change between now and next year that we won’t be able to truly test these candidates’ mettle until one of them is already sitting in the Oval Office.