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Investors Beware: Five Risky Sectors Caught in Obama Administration Crosshairs

January 27th, 2010 Leave a comment Go to comments

These Sectors Could Suffer from Administration Policies”Don’t quarrel the fed.” This old proverb about down payment investing lends itself good to modern-day batch investing as stream domestic posturing by the Obama administration department department department leaves multiform sectors precarious.Here have been 6 sectors precisely in the crosshairs of the administration. (Note: These discussions have been meant as zone overviews for the prolonged term, not as an research of stream batch metrics or marketplace –>
 timing.)1. Banking and FinancialsThe administration’s brand new supposed “bank tax” – a price costing banks up to $120 billion over multiform years – targets even institutions which have already repaid their TARP loans. That could repairs banks’ bottom lines.Another administration department department department proposal, written to quell risk-taking, might extent essential investment transactions. Just the proclamation of this offer coincided with scarcely 5% one-day waste in a little associated batch values this month. And appearing caps on senior manager salaries might outcome in “brain drains” from American-based monetary companies.All combined, these plans, and category crusade tongue together with “fat cat bankers,” bucket bullets in to the gun.Stocks Under the Gun: Bank of America, Citigroup, Goldman Sachs, JP Morgan Chase2. TobaccoThe Justice Department continues to aspire to scarcely $300 billion from 4 vital tobacco companies, formerly authorised by a since-overturned 2006 justice ruling. That’s rounded off an startling thirty times final year’s total gain of the 4 defendants.Stocks Under the Gun: Altria, British American Tobacco, Reynolds and Lorillard. 3.Oil and Natural Gas (Exploration and Providers)Ken Salazar, President Obama’s allocated Secretary of the Interior, ominously foreshadows America’s oil and healthy gas exploration. While articulate with the New York Times recently, Mr. Salazar not usually lauded restrictions on oil and gas leasing, but additionally singular his 3 tip priorities to “renewable energy…climate change…and 21st century land charge ethics”. Alarmingly absent: Tapping America’s vast, resting oil deposits.

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