Skip to comments.Obama Billionaire Supporters are Causing Market Headwinds
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 havent 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 havent 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? Youll 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 guess all these uber rich don't have to worry about THEIR wealth being spread around. FLAT TAX.
Many of them would love a market collapse. Lots of buying opportunities to be found while that messy blood is being washed off the street with high-pressure hoses.
is bill’s friend, ron burkle,
he’s a billionaire.
burkle owns yucaipa industries and a 727 that he and bill use to bed down ladies.
bill gates and warren buffet are stuck on mr evil.
I think this is an under rated theory. I think government investigations are warranted. This was an orchestrated terror attack on our financial system comparable to the WTC attacks.
Auto's were killed by high gas prices now by credit crunch.
The economy was set up for a total free fall by spring.
John Gibson and Mike Huckabee have alluded to this, that many hedge fund types are Obama supporters and are in positions to tamper with the market without any longterm harm to themselves or their massive wealth.
This was evidenced by the suspicious late hour sell-offs of recent days. It didn’t happen today, but tomorrow is another day.
This much is certain: it’ll all calm down after the election.
Jason Schwarz is speaking through his arse. This is pure BS!
With Democrats in control of the House and Senate, and probably in control of the Department of Justice (certainly if Obama wins, but even probably if McCain wins), who is going to push for an investigation?
you can only Buy High and sell intentionally low for a short period of time.
If ANY of this is true then crimianl perp walks are appropriate.
Soros promised that he would use his money to defeat Bush in 2004.
He was humiliated on that count despite spending huge sums of money funding 527 attacks.
He definitely has the motive. Buffet also dislikes Bush. Schumer was trying to tank banks by talking them down. There has been a relentless effort among the Bush reactionaries to destroy the nation.
Soros has been convicted of doing this with other national economies.
Yes. In the same fashion, it's been almost exactly eight years since I've last heard of an opinion poll that distinguished between a President's public performance and his personal life...
I’m no economic genius - I understand the basic concepts but that’s about it. This seems to make some sense, or at least be possible.
Can you elaborate?
I’ve never understood why uber-billionaires like Soros want people like Obama elected. Perhaps someone could explain this to me.
>you can only Buy High and sell intentionally low for a short period of time.
>If ANY of this is true then crimianl perp walks are appropriate.
I would love to see them miscalculate and lose everything... and then get prosecuted! (But that’s because I’m a pyromaniac and know; that if you play with fire you SHOULD get burned.)
“I think this is an under rated theory. I think government investigations are warranted. This was an orchestrated terror attack on our financial system comparable to the WTC attacks”
I think you are right, like tossing a Molotov cocktail into a crowded theater, it’s hard to imagine that what happened wasn’t what was intended. It appears that people in a position to investigate have no interest in doing so, or in applying an effective remedy to the crisis, for that matter.
With those guys in there with their man Obama in charge we can be just like Putin’s Russia, oligarchs and a KGB mentality. Watch out opponents who are not billionaires and the Constitution will be a real hindrance to such a bunch.
This article explains our strong dollar and the dropping price of gold.