The Future: More Confusion

Life, Liberty, and the Pursuit of Happiness

Truth:  Capital flows in the direction of the highest RETURN with the least amount of RISK

Citizens have re-elected the most divisive socialist I could have ever imagined but that is what they want (at least half of the voters).  For investors, such as myself, we have to consider the anti-business environment that this President brings to the table along with a complete agenda to transform America.

2012 Obama Re-Election Consequences for Investors to consider:

• inflation (all business segments and asset categories) (consumer prices)
• Cap-and-Trade will reemerge as an issue 
• 2013 higher taxes (Obamacare) (estates) (capital gains) (personal)
• appointment of more liberal justices looking to punish business concerns even more and re-interpreting the constitution 
• divisiveness (House vs. Senate and President) (Republicans vs. Democrats) (Budgets)
• redistribution of wealth issues will intensify (entitlement programs will expand)
• private property issues will intensify (guns, etc) 
• debt and deficits increase by unholy amounts (Democrats trying to spend their way to prosperity)
• terrorism intensifies (lower military spending)
• zero interest rates for investors (bonds, CD) for years to come (FEDERAL RESERVE)
• rising health care insurance rates (Obamacare) (DHHS)
• private hospitals will be put under extreme pressure (DHHS) to reduce costs
• fossil fuels will be demonized and prices increase (oil & gas, coal) (EPA)
• labor unrest will intensify as business profits are put under increasing downward pressure (NLRB)
• multinational corporations will move more off-shore to avoid regulatory problems
• avoiding higher taxes and regulations will become business and investor highest priority
• Multinational Corporations will not repatriate their foreign profits back to America (IRS)

Research to understand to evaluate the following issues:

• investments that can stay up with inflation (multinational corporations?) (FEDERAL RESERVE)
• industries that will not be demonized and/or harmed (EXECUTIVE ORDERS) (EPA)
• avoid higher taxes where possible (Cayman Islands?) (IRS)
• industries where regulatory pressure will be applied (NLRB, DHHS, EPA, Dodd-Frank)
• currency devaluation (FEDERAL RESERVE)
• Foreign investments
• Real Estate
• Industries that Democrats like