Ways to profit from the Obama Second Term

Sounds weird right?

Im not saying Im happy he won, but as preppers we dont always get to pick our battles or circumstances, but we can be PREPARED for them, and thrive.

Just like my other disclaimers, this is my opinion.

Take what i have to say, check it out, do your OWN research, see if it works best for you, make your own decision, and then live with that decision.  I dont say this to “cover my bases” or that i really dont believe in what im saying, its because well…life is unpredictable, you can be 99% sure of something, but on occasion that 1% can really bite your ass, and often Hard!

1. HEALTH CARE COMPANIES

Obamacare, like it or not, is going to be enacted, the mandate will come to pass and EVERYONE will now have “access” to healthcare and eventually this will turn into a British style NHS system, where you wont have Aetna or BCBS, but a government run national system, thats just how it will be, its not written to do that immediately but it is written so that eventually the ability for insurance companies will operate will not be profitable as people jump to the government funded one.

I know i say go into metals, but that doesnt mean you cant profit in the stock market on occassion, despite the underlying foundations of our economy and coming collapse, you can still make money.  Even after Black Friday (The Great Depression) people still made money in the market.

I would look at not insurance companies but pharmaceuticals and medical supply companies.

BE WARY OF MEDICAL SUPPLY PRODUCERS!

In the new bill there is a tax on these companies at 2.3%, well for their products going online next year (2013).  This well be everything from wheelchairs to pacemakers.  This “tax” will be passed onto the consumer, however the bill offsets this by allowing more “access” to products by those covered under the bill.  The increase demand could mean higher profits and stock prices, but for some companies that work on small margins of profit, this may mean a death knell, just be careful.

I would look at pharmaceutical companies, there will be an even larger demand for their products, especially the manufacturers of generics once the people of the country get “free” access to them.

Companies like

• Prizer (+70% since 08′)
• United Health Group (+73% since 08′)
• SPDR Health Care (+252% since 08′)
• Alexion Pharmaceuticals (+31% since 2010)

These are not guarantees but they have been showing promise over the last years since O’ took office.

2. HOME BUILDING/REAL ESTATE

Now does this mean i think Real estate Will come back to the 90′s/00′s level and be fine again everything will be grand?

NO! Home prices as well as real estate were never allowed to correct, they have alot more to fall

However the new QE infinity will probably boost prices before they begin to drop again to correct the price issue they were never allowed to in 2008

However in the short term, smart trading could net you some profit.

• Lennar
• Pulte Group
• Louisiana Pacific
• Nationstar financial
• Home Loan Services

3. Financial Services

These are credit companies, will they fall to new lows once the monetary/debt bubble pops?

Yes, but until that happens they will continue to rise as Americans feel the false recovery occuring, they will start to spend more, but spend smartly and not be as delinquent as trends have been showing.

• Discover Financial Services
• Capital One Financial
• Mastercard

These are risky, but could be a payout, if you play it smart, read the tea leaves, and pay attention.

DO YOUR HOMEWORK!

WHAT TO WATCH OUT FOR

1. Do not invest in ANY companies that run FOR PROFIT colleges such as

• Everest College owned by Corinthian Colleges
• Art Institute owned by Education Management Corp
• Sanford Brown owned by Career Education Corp

to name a few.  While experts dont expect new regulations, you can guess there will be more “scrutiny” and perhaps witholding of grants or the now federally managed student loans for these colleges.  The Teachers Unions are strong and will probably do whatever they can to eliminate ANY competition.

2. ENERGY/COAL RELATED STOCKS

Stay out of Coal, Stay out of Coal, Stay out of Coal

Big things are coming down and coal producers are going to be hit hard, as well as companies that provide energy from coal producing plants.  Things will get passed to the consumer, but they will also hurt.

CONCLUSION

Obama will be good for some areas and not others in the short term, however the system is cracking, the massive amounts of stimulus are currently being held in reserve by various banks and financial institutions, once that dam breaks and the VELOCITY of that money makes it way into the system, dollars will be devalued, anything denominated in dollars will be devalued, and things of intrinsic value will become more important.

ie: commodities like grains, gold, etc.

Thats where your preps come in, so you are now eating $1 cans of food that are now listed at $15, and while others are losing thier life savings in 401k’s that are being devalue as the dollar loses its worth, the gold or silver you have will continue to hold its value relative to the dollars loss.

I would reccomend these things most of all.

Food: To eat, to live on and survive and to help out your families and friends, while the prices skyrocket your are comfortable.

Land: To live and thrive on, grow your own food, raise animals for meat.

Metals: Mostly silver to continue to be able to trade that silver for dollars to buy what you need, that silver will still buy what it did when you bought it, while the dollars in the bank will buy less and less.

These ideas for stocks and companies to buy shares in are for informational purposes, you make the decision.  In the end, these three things above will carry you farther than anything else.