Here come the Bears marching down Democrat blvd.
Now the mid-term elections are over and sadly the Democrats have the power. You can expect a Democratic President next election also. This is bad news for the stock market or at least my take. From what I’ve see Democrats don’t help and push big business which creates jobs and lifts the market and the economy. Don’t get me wrong I even consider myself very democratic, but when it comes to making money in the market the only seats and president I want are Republicans. There is no more uncertainty in the market. The votes have been made. If you’ve been reading much of the market news you will keep hearing over and over again problems with big corporate companies. Yes, companies are coming out with better than expected earnings, but problems still keep leaking out. I feel if the market will push on companies will also have to tighten up and be more optimistic. Now that Democrats hold power it will be a fight for big business and spending lots of money to keep pushing the economy. I wonder how well companies will do into the next year. Taxes could change again and that could reflect in corporate profiting. Recently a shipmate I was teaching a bit about options to found some index funds I think investors shoud take noting of. He came across http://www.ishares.com iShares is an ETF index funds managing company. Just from seeing what holdings in the index funds, the possible growth, and the cost of an option I was very intrigued. I am mostly interested in the international and global market index funds for Japan, China, and Korea. The growth in China in phenominal compared to the USA and investing in it right now is the right time. Over 2-3 years ago even my mentor was talking about investing in companies that have business in China. I will begin investing in is FXI China Growth Index Fund. The index has been steadly growing and is still very young. The option prices are very affordable. Index funds are more liquid larger and are kind of like a big mutual fund but trades like a stock with options. I’ve traded the QQQQ and OEX. If the USA was growing like China the QQQQ’s would be in the $60-80 price range. It kind of shows that growth truly is slowing within the US economy and its time to look for investments that will move elsewhere.
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