Money & Investing - Banks.com

Today, on Election Day, the stock market is seeing gains. In general, investors are looking forward to this election because, whether Barack Obama or John McCain is elected, there will be a change in the way things are done. And both presidential candidates have shown their commitment to Wall Street (no matter what they say in stump speeches), and the general feeling is that either one could help things go better for the stock market, investments and the economy.

Of course, there is speculation that either McCain or Obama could be better for investing. Democrats point out that historically, the stock market does better when their party is in charge. Republican counter that they set the stage and Democrats reap the credit. Personally, I think that since the stock market tends to gain over time, neither is going to have a big impact on the long-term performance of the stock market. But their policies could affect which individual stocks gain and which lose.

Picking Obama stocks and McCain stocks

Consider:

• If Obama wins, then there is an argument for more alternative energy funding. McCain says he will fund alternatives, but he seems mostly focused on nuclear as the alternative. So, if Obama wins it is possible that we could see a gain in alternative energy stocks, especially wind and solar power stocks. Additionally, social funds may see an increase in value.
• If McCain wins, we are likely to see a boost in funds that hold tax-advantaged dividends, as well as nuclear energy companies and resource companies. I also expect that companies that provide armament and other military supplies would get a boost from a McCain victory.

BloggingStocks has a very interesting list of individual stocks and funds that might be good choices, depending on who wins. It is definitely worth checking out.

And, whether you are voting with your wallet or voting for some other reason, remember to get out and VOTE.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.

For many beginning investors, there are two main concerns:

1. The amount of capital needed to open an account.
2. Worrying about when to buy and when to sell.

One of the ways to alleviate these concerns is through an automatic investment plan (AIP). An automatic investment plan is one in which a set amount of money is set aside regularly, automatically put into an investment.

Does this sound familiar? If you have a retirement plan, it should. Many people have their retirement contributions set up on an automatic investment plan. In the case of retirement accounts, the money is often taken out automatically from a paycheck and put into the account. In the case of some retirement accounts, there are tax benefits to contributing. (Watch out: In Washington, they are considering taking away the tax benefits.)

But an automatic investment plan can work beyond retirement accounts. Some mutual and index funds and even some stock investment plans allow you to take advantage of an automatic investment plan. Every month, you can have money withdrawn from your checking account and invested. This can be little as $20 in some cases, although many brokers require you to invest at least $50 a month.

Investopedia explains why an automatic investment plan can be of benefit:

This is one of the best ways to save money. By “paying themselves first” many people find they invest more in the long run. Their investments are treated as another part of their regular budget. It also forces a person to pay for investments automatically, which prevents them from being able to spend all of their disposable income.

If you want to earn some returns, and aren’t concerned that they be extremely large, an automatic investment plan is a good way to go. And, with the stock market in its current state, your automatic investment can buy you more bang for your buck.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.

Tags: stock market, tax benefits, investing blog, automatic investment plan,
economy, investments, retirement accounts

There is an old saying about the stock market: “Buy low, sell high.” And for many, now is the time for just that. Indeed, there are plenty of so-called “vulture investors” out there right now, waiting to pounce. Stock Market Funding reports on how things are playing out for these investors:

NY Times reports even before the ink dries on a proposed $700 billion bailout for the financial industry, Wall Street players have begun jockeying to be the first ones to snap up distressed investments on the cheap. As they try to make sense of how a government bailout would play, vulture investors are combing through balance sheets of possible targets that could run into trouble if banks start calling back loans to businesses and the economy worsens. …

They are preparing for a field day for deals, not only in the financial industry, but in the industrial, retail and other sectors where the flagging economy and tight credit will push more companies to the brink.

You don’t have to be a vulture investor to take advantage of the climate, though. Measured, thoughtful investments made now can yield good results down the road. Considering value stocks and companies with good fundamentals that are likely to recover is good bargain-hunting sense.

Others are considering funds that are meant to take advantage of pooled performance. Index funds are rather popular right now, since you can get more for less, and — over time — the market generally gains. But for such a strategy it is necessary to have a long term outlook. We’re talking an outlook of 10 to 20 years in order for such a strategy to work well.

Still others are hedging with commodities and using gold to try and prevent inflation from eating away all of their assets.

Are you employing any strategies to maximize your investments right now?

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.

Tags: stock market, stock market news, investing blog, index funds,
economy, investments, vulture investors