Obama and Your Stocks

Article Excerpt

Investors worry that President Obama will hurt the economy by raising taxes and working against free trade. However, Obama may turn out to be more conservative in action than you’d guess from looking at his circle of friends and associates, or some of his earlier writings. U.S. politicians are rarely as bad or extreme in office as you’d expect, based on their campaign talk. After an election, they naturally gravitate toward the center of the political spectrum. Obama’s election could spur further gains in the U.S. dollar. The U.S. dollar rose from $1.03 Cdn. in late September to $1.29 Cdn. in late October. Since then it has dropped, and is now around $1.24 Cdn. However, the U.S. dollar could soon stabilize, then start rising again. Obama’s plan for a quicker-than- expected exit from Iraq will help cut the U.S. budget deficit. Meanwhile, the drop in the price of oil acts like a huge tax cut for the U.S., and helps relieve the pressure on homeowners…