You may be concerned about the stock market now that Barack Obama has won the election. Some people believe that Republicans are better for Wall Street than Democrats are. But history shows that the market has actually performed better under Democrat presidents.
As bad as things have been, I expect the economy to bounce back in the second half of 2009 – and not because of the outcome of the election. Sure, there are certain sectors that will benefit from Obama’s victory (biotechnology and alternative energy in particular). But the overall market is primed for a short-term rally. I say short-term, because there is a lot of resistance for the market to take out before the bear market can be declared dead.
The budget deficit, the ailing job market, and a broken financial system are going to be tough to overcome. The new president and Congress will have their work cut out for them.[Ed. Note: No matter what the market does in the coming months, you can still find opportunities to profit. Market analyst Rick Pendergraft has developed an easy-to-use trading program that delivers very nice gains at steady intervals – close to once a week. It helps you use the market’s fluctuations to your advantage, so that the economy doesn’t affect your earnings one bit.]