Posted on 10/28/2008 7:21:27 PM PDT by samsmom
Market turmoil gets Barack Obama elected. He knows this and more importantly, so do his supporters. A survey released by Prince and Associates, shows that 75% of voters worth $1 million to $10 million are favoring John McCain, but of those voters worth more than $30 million, two-thirds support Obama. It's no secret that the majority of uber rich individuals despise the current administration and are willing to do whatever they can to get new blood into the White House; even if it comes under conditions of an economic collapse.
These Obama billionaires, led by famed market manipulator George Soros, would love to kill two birds with one stone. If they can get their man into the White House and buy back into the stock market at a once-in-a-generation low on November 5th they will be able to declare a double victory.
While the billionaire's club lacks the actual resources to completely move the broad market, they definitely have the resources to start a snowball effect. In 2005, George Soros convened with his group of 70 super-rich liberal donors in Phoenix to evaluate why their efforts to defeat President Bush had failed. They came away from that meeting with a plan to push even harder for a victory in 2008. The recent overreaction in equity prices has been attributed to the hedge fund/mutual fund redemption crisis that caused record amounts of money to exit the market during the first half of October. Could it be that the big money had something to do with the panic?
October 3rd was an especially vulnerable moment for the market, it was the day that the $700 billion bailout bill was passed. As the market looked for direction on that pivotal day, the Dow rose to 10,844 but was pushed down in the last hour of trading to 10,325. The downhill market snowball had begun even though a solution to the financial crisis had been passed. We haven’t seen Dow 10,000 since. But we have seen a lot of manipulation occur during the last ten minutes of trading on multiple days since October 3rd.
The media went wild with predictions of another Black Monday mixed in with a feeling of doom and gloom like we haven’t seen since the Great Depression. What for? The government had just taken the systematic threat of bank failure off the table. Conditions were vastly improved but the market still panicked and Obama slowly assured himself of a November 4th victory.
Perhaps the most clear indication of market manipulation has been the price of gold. If the market truly believed all of the doom and gloom that the media is preaching, that the Great Depression is upon us, gold would have quickly eclipsed its 52-week high of $1028. Remarkably it has gone down; yesterday it closed at $742. This price action indicates that the wild volatility we have experienced in the broad market may have been started from a small minority of wealthy players.
So how should investors play this underlying market tussle? You’ll want to own the ‘babies that have been thrown out with the bath water’. There is a select group of stocks with pristine balance sheets and solid growth prospects who have been beaten down for no good reason. I will be averaging into many of these stocks after the (unknown and usually incorrect) initial GDP report is released on October 30th in anticipation that big money will be getting back into the market post election. 1-Apple (AAPL) $25 billion cash, 0 debt 2-Automatic Data Processing (ADP): $1.5 billion cash, $66 million debt 3-China Mobile (CHL): $31 billion cash, $4.96 billion debt 4-Cisco (CSCO): $26.3 billion cash, $6.89 billion debt 5-Ebay (EBAY): $3.64 billion cash, 0 debt 6-Exxon Mobil (XOM): $40 billion cash, $9.64 billion debt 7-Garmin (GRMN) $660 million cash, 0 debt 8-Geron (GERN): $185 million cash, 0 debt 9-Google (GOOG): $14 billion cash, 0 debt 10-Gushan Environmental (GU): $168 million cash, 0 debt 11-Intuitive Surgical (ISRG): $408 million cash, 0 debt 12-Lululemon Athletica (LULU): $43 million cash, 0 debt 13-NVIDIA (NVDA): $1.66 billion cash, 0 debt 14-Stryker (SYK): $2.6 billion cash, 0 debt 15-Yahoo (YHOO): $3 billion cash, 0 debt
This list of 15 stocks has been beaten down with the rest of the market and they will be the early leaders once sentiment changes; I expect substantial support to arrive in US equities once Obama is elected. When the mood improves, those record amounts of cash sitting on the sidelines will jump in for fear of being left behind. What will all that cash be buying, cash of course.
DISCLOSURE: OWN AAPL.
I know at least one billionaire not supporting Obama. Wayne Huizenga now looking to sell most all of his holdings in the Miami Dolphins to avoid the taxes.
http://www.mofopolitics.com/2008/10/27/dolphins-owner-sell-team-before-obama-tax/
Nah, most of the hedge funds are down 40%+ this year and getting worse by the day. They are getting massive margin calls AND redemptions. This article is a lot of speculation with no real teeth. The fact of the matter is the economy is in very bad shape, the banks are deleveraging and profits are dropping quickly. Nearly every CEO/CFO that has announced Q3 activity said in September sales basically fell through the roof and based on what I’ve seen October has been far worse. Keep in mind with an Obama victory, capital gains is going to double also so a lot are cashing out this year. I wouldn’t be surprised to see a retest of the lows earlier in the decade close to 7,000—or maybe lower depending on how some of this commercial paper starts to go.
Because they believe is socialism which is communism.
http://www.dailymotion.com/video/k6KUDv1wzraWhwlBt1 hewre’s 16 minutes that every American needs to watch.
A conservate sees a poor person and asks “How can I help”.
A liberal sees a poor person and says: “Someone else should help. I know a government program...”
Joe Kennendy and his small group shorted the market which caused the Great Depression. It is thought that he made a $Billion in 1939 while everyone lost their fortunes. This helped FDR get elected.
Could $oro$ and Buffet be doing the same thing?
Pray for W, McCuda and Our Troops
THE DAILY MOTION VIDEO IS A MUST-SEE. YOU SHOULD POST THIS WITH OWN HEADING.
bookmarking.
I read the full interview ten or twelve years ago. I am sure there is copies of the video all over youtube. Go ahead and post it if you wish.
Keep in mind with an Obama victory, capital gains is going to double also so a lot are cashing out this year.
Of course, a McCain victory should preumably have the opposite effect.
I’d expect a sizable rally if McCain wins. We’d almost definately go over 11k again in the near term I’d have to imagine.
>>I had some suspections it would be Muslim money not Soro’s
Why not both and?
I’d expect a sizable rally if McCain wins. We’d almost definately go over 11k again in the near term I’d have to imagine.
Obama is not going to win. Other than that, some of Jason’s stock picks may be worth a buy right now. Kinglinger’s is recommending several them (GOOG, XON, AAPL, CSCO) Curiously, Berkshire Hathaway has also been beaten down. Why?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.