~ How Will the 2008 Presidential Election Affect You? Register Now

2008 continues to be a rough year for investors.

Whether you might have been committed to property or perhaps the stock market, both have gone down greater than up. The credit crisis and energy prices are actually blamed for most from the damage.

Talking to investors, I have the sense that numerous are concerned with the election.

The data that we track from Intrade, a futures based election trading system, show Obama having a clear 64% to 37% lead over McCain. Unless Obama makes some unbelievably bad mistakes over the next handful of months it is likely he will probably be our next president. Historically, this tracking service continues to be considerably more accurate than traditional polling.

Investors are justifiably concerned because a lot of Obama's policies are potentially damaging to your economy.

Under the premise that the government knows how you can better spend your cash than you do, Obama really wants to raise taxes significantly. And any economist will tell you that raising taxes just isn't just how to help a weak economy.

Obama's platform proposes major tax increases.

He is focused on raising more taxes from those taxpayers who already pay 90% with the U.S. tax bill. The main point here along with his program is that in case you already pay a lot of taxes then you will pay significantly more. If that you do not pay very much in taxes then you must not see much change, you may even pay less. According to your recent Wall Street Journal editorial, Obama would raise the very best tax rates off their current 40% to around 60%, including the federal and state taxes.

This is a calculated political bet that you will discover there's majority of Americans that want the harder affluent minority to cover all America's bills. Throw in a few anti war rhetoric and a promise of undefined "change" and you've got a recipe for the successful presidential campaign.

There is absolutely no help to arguing the merits of Obama's platform. We can't control the end result in the election. But we are able to control a purchase strategies we follow during these uncertain times.

Historically, when democrats go ahead and take white house, the market industry usually does better than under republicans. That was no typo. It's somewhat confusing though.

Usually starting an election, in case a democrat is winning, Wall Street expects the worst, and the market sells off in advance. After the democrat gets in office, then Wall Street realizes they aren't going to complete what they promised, breathes a sigh of relief and then the market rallies.

On the opposite hand, if a republican is winning, industry has positive expectations and rallies in anticipation. But then as soon as the republican gets in, as well as doesn't keep their promises, then your market sells off in disappointment.

So far this coming year the market has followed a pattern just like previous election years if the incumbent party has lost.

If McCain is in a position to miraculously turn things around we will probably see a significant rally to the end from the year. If Obama keeps his lead then this market is going to be flat to only slightly up between now along with the end from the year, but then the coming year the market should perform better.

While market forecasts make interesting conversation, I don't put a large amount of stock in them, including my own. At Paragon Wealth Management, our investment decisions are depending on quantitative models. We

The bottom lines are that election WILL affect the market.

Certain markets and sectors will perform much much better than others, depending about the election outcome. It is very important to possess an investment strategy in place which will adjust to whatever changes take place. In the stock market, change is the one constant that you simply can plan on.



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