Some of the solidest opportunities in the stock market arise because of politics.

The government controls billions of dollars. That kind of power can make or break an industry. And the effect that an Obama presidency could have on pharmaceutical companies is one you should be aware of.

As you may know, Obama (and Democrats, in general) is in favor of importing generic medicines from overseas. This would not only increase the use of generics in this country, but also allow the government to negotiate lower prices with U.S. drug manufacturers for their name brands. Sounds good for us… but it’s not good for the big pharmaceutical companies.

First of all, if the use of generics increases, the big pharmaceutical companies will make fewer sales with their name brands. Second, the drug companies charge Americans up to two times more than they charge Europeans and Canadians for the same medicine. If the government negotiates lower prices for Americans, that means their profits could be cut in half. And if that happens, you can be sure their stock prices will fall as well.

So do yourself a favor and stay away from pharmaceutical companies until well after November 11.

[Ed. Note: One of the golden rules of investing is DON'T LOSE MONEY. You can keep your cash safe by following market analyst Charles Delvalle's advice to stay away from pharmaceutical companies. And you can keep your money safe AND make it grow by investing in low-risk, high-value stocks. Learn how you can pinpoint the safest stocks with the highest profit potential right here.]

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