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Barack Obama will influence markets more than any other president in history. America is on the cusp of insolvency, our economy is crumbling, and the federal government is printing money as fast as it can to keep the system from collapsing. Whether or not attempts to "fix" the economy work, you can bet on an unprecedented redistribution of wealth over the next administration. Cumulative federal commitments to financial rescue attempts, reports Bloomberg News, have reached a staggering $8.5 trillion this year. On top of this, Barack Obama is throwing around the idea of pushing another $1 trillion fiscal stimulus bill. The magnitude of these cash flows is enormous. Policy drives markets now more than ever. The larger the role government plays in the economy the more imperative it is to understand how policies affect investments. On a broad scale federal action influences our currency, interest rates, and inflation. Drilling deeper, government policies redistribute resources in ways that benefit some companies and hurt others. "Obamanomics: A Guide to Investing Over the Next Administration" (www.learnobamanomics.com/book) shows you how to protect your portfolio and take advantage of policy decisions. Expect union-heavy industries-like automotive, airline, and steel-to prosper as taxpayers assume the burden of employee health care and trade policy changes to protect domestic businesses. Stay away from the defense industry as both the War in Iraq scales down and long-term acquisition programs are cut. But look towards "green" businesses, carbon-efficient utilities that will benefit from cap-and-trade emissions regulation, and alternative sources of energy that will have wind-fall piles of cash thrown their way. Obama's policies are well known, so now is the time to start considering how they will impact markets and your portfolio. Read my book and visit www.learnobamanomics.com to stay on top of new policy direction. Don't let yourself get caught on the wrong side of the policy game!
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Robert Viglione is a author, hedge fund manager, consultant, and real estate broker. He is General Partner and managing director of Viglione & Partners Assurance Group, L.P., an options trading firm specializing in market-neutral options strategies. Read his latest book, Obamanomics: A Guide to Investing Over the Next Administration
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