Birds Eye View: Thursday, February 14, 2008- What Lie Will We Hear Today?
2008 Elections: Investment Implications Government policies over the next several years could have a profound effect on specific industries rather than on the total stock market. At the beginning of 2008, Intrade, an electronic market that actively takes bets on different outcomes, gives the upper hand to Democrats. Intrade, suggests the Democrats are favored to win the White House (61% probability), the Senate (88%), and House of Representatives (88%). Wall Street has been trying to sucker you in to buying Healthcare stocks during this period of economic weakness. The sector is being touted as a “safe haven” during these turbulent times. The reality is Democrats historically have allowed the federal government to negotiate or even set the prices it pays for goods and services under Medicare and other programs. This will have a direct affect on the profitability of pharmaceutical and managed care companies. In recent years health care inflation has eaten away a large chunk of consumer
