Stocks To Buy On A Romney Win…
Whew. It’s almost over…
Just a few more days and the 2012 elections will be a thing of the past. After months of debating, baby kissing, and annoying attack ads, politicians are entering the final stretch.
Speaking of the final stretch, GOP presidential nominee Mitt Romney’s popularity is surging at just the right time (or wrong time depending on your views).
According to the most recent Gallup poll, Mr. Romney has a 3-point lead over President Obama heading into the November 6th election.
Will Mr. Romney win by a nose?
Time will tell.
But as an investor, now’s the perfect time for you to see which stocks will react favorably should the conservative leader win. After all, Mr. Romney plans on making substantial changes to education, the IRS tax code, and US energy policy. And if he’s elected, numerous stocks in specific industries will likely get a big boost.
Here’s what I have my eye on…
First of all, according to numerous studies there aren’t enough skilled workers to fill available jobs in the US. Part of Mr. Romney’s proposal to solve this problem is Personal Re-Employment Accounts (PR-EAs). These government backed accounts would provide personal funds for unemployed workers to get advanced training.
Which companies might benefit from PR-EAs?
The hard hit for-profit education industry could get a much needed a boost if Romney’s job creating plan comes to fruition. Shares of Apollo Group (APOL), Devry (DV), and Corinthian Colleges (COCO) may see investor interest rise should Romney get the presidential nod.
Speaking of investor interest…
Mr. Romney says he’ll seek to eliminate taxes on dividends, capital gains, and interest for taxpayers with gross incomes below $200,000. If enacted, these tax breaks will most certainly boost the trading and investment industry.
After all, investment profits that are currently taxed will be free to go back into the markets. Online brokers such as TD Ameritrade Holding (AMTD), Interactive Brokers Group (IBKR), and The Charles Schwab Corp. (SCHW) may see their shares rise as Romney’s plan bolsters their bottom lines.
But in my opinion, the most important changes proposed by Romney has to do with US energy policy…
The conservative nominee has said time and again that increasing domestic energy production is near the top of his to-do list. Romney’s also made it clear which energy industries he’ll support, and which ones he won’t.
As a matter of fact, in the first Presidential debate Mr. Romney lambasted President Obama on his green energy investment record, namely Solyndra and A123 Systems (AONE).
In case you’re unaware, both these green energy companies were loaned millions of dollars in government funds… only to go bankrupt.
Mr. Romney said in no uncertain terms he’d slash Department Of Energy loans for green energy companies. Instead, he’ll focus on reinvigorating the US clean coal industry, as well as promote oil and gas drilling on federal lands.
While I strongly disagree that coal is the answer to America’s energy problem, shares of Walter Energy (WLT), Cloud Peak Energy (CLD), and James River Coal (JRCC) should benefit if Romney gets the presidential nod.
As far as drilling for oil and gas on federal lands, it’s a no-brainer…
It’s insane to keep sending so much of our hard-earned money to the Middle East. By promoting drilling here in the US, we would get a long way towards weaning ourselves off expensive (and dangerous) OPEC oil.
Oil services companies such as Baker Hughes (BHI), C&J Energy Services (CJES), and Halliburton (HAL) would benefit from increased US drilling activity.
Bottom line…
Everybody knows there’s a lot at stake in the upcoming election. But as you can see, there’s also some excellent profit opportunity for investors should Romney take the win.
Until Next Time,
Justin Bennett
Category: Stocks
