{"id":7637,"date":"2012-12-11T13:33:54","date_gmt":"2012-12-11T21:33:54","guid":{"rendered":"http:\/\/ietransfer.wpengine.com\/?p=7637"},"modified":"2012-12-11T13:33:54","modified_gmt":"2012-12-11T21:33:54","slug":"the-44th-president-global-investments","status":"publish","type":"post","link":"https:\/\/inspiredeconomist.com\/articles\/the-44th-president-global-investments\/","title":{"rendered":"The 44th President – Global Investments"},"content":{"rendered":"

\"Obama<\/p>\n

Four more years in the White House and Barack Obama reckons \u2018the best is yet to come\u2019.<\/em>
\n Does the market support his optimism? Can investors find opportunities to shelter from the storm?<\/em><\/p>\n

The re-election of the 44th President of the United States has never been more significant to global investment understanding. While in some quarters Barack Obama\u2019s success has been greeted with tangible relief, other forecasters warn of the impending doom facing the US economy.<\/p>\n

This article sets out to examine the impact of the presidential race and its effect on investors\u2019 confidence. Are there still options for the savvy investor in a seemingly unstable financial climate?<\/p>\n

Once the dust has settled on the fierce voting for control of the White House, many financial institutions will be forced to put aside differences of red and blue and focus pragmatically on the fortunes of the greenback (US dollar). The burning question on every investor\u2019s mind is whether the Obama administration will help or hinder profits.<\/p>\n

The constant speculation from analysts was not whether Barack Obama would win, but whether he would gain the power necessary to implement change needed to avoid the \u2018fiscal cliff\u2019.
\nA buffalo analogy may be pertinent. American politics has unfortunately tethered the US financial institutions to a stubborn, slow-moving bovine, wide-eyed and reticent to any opposition to its rightful habitat. It\u2019s known to steadfastly refuse to be drawn into meaningful engagement that diverts it from its path, even if that path leads to a drop that will plunge the economy into a recession.<\/p>\n

There are two outcomes for the present administration. The first involves gently coercing a Republican-dominated House of Representatives and a partisan-Democrat Senate into a mutually beneficial slow turn acceptable to both parties. This is perhaps the most palatable outcome and the one the marketplace is anticipating.<\/p>\n

Crucial to the stability of the US economy, the status quo has been resumed and politically nothing much has changed. In this way, President Obama, billed as the \u2018continuity candidate\u2019, has successfully blocked any major changes in policy that may have come to pass had Mitt Romney and the Republicans been elected, such as the extension of tax cuts for the wealthiest 1%<\/a>.<\/p>\n

If Mitt Romney had won office, his financial engineering might well have stimulated a shot in the arm for business growth in the short term, while economists feared his opposition to quantitative easing. The chairman of the Federal Reserve, Ben Bernanke and any specific change to foreign policy would raise significant question marks over long term financial prospects. Marketplaces do not like question marks, they prefer certainties.<\/p>\n

While the Obama administration clearly frustrates wide swathes of American voters, particularly in the south and central plains states, on the eastern and western seaboard and particularly abroad he is undoubtedly popular, in no small part due to his ongoing support of clean energy<\/a>. This is seen as critical and foreign investors have borne out the hypothesis that \u2018it\u2019s better the devil you know\u2019.<\/p>\n

The second outcome seems less desirable. This article continues…..<\/a>Having failed to reach an agreement with the Republican Party, the Democrats can create a stampede that drives the economy over the edge of the \u2018fiscal cliff\u2019, plunging the economy into recession, a fire sale that would wipe the slate clean and allow the democrats to reframe tax proposals.<\/p>\n

Both outcomes have their benefits, but regardless of the result of negotiations over the next fiscal quarter, the investor, like Congress, faces some tough decisions. Neither outcome provides a clear directive for investment opportunities. When doing nothing is not an option for the personal investor, opportunities are still available for consideration.<\/p>\n

There are proposals that present investors with the ability to buy time in unstable markets, so long as the fund management they are working with has access to the best technology and superior risk management facilities able to interpret changing global financial landscapes. One such idea, proposed by companies such as Fidelity UK, is that investors place their savings in holding accounts called ISA Cash Parks.<\/p>\n

The idea is to create a haven for money in less than certain times, particularly relevant after the unsettling effects of an election battle.<\/p>\n

So what is a Cash Park ISA?<\/strong><\/p>\n

1) The ISA Cash Park offers a high level of control, allowing the saver to make the most of their ISA allowance and then defer their investment to a later date.
\n2) Opening an ISA is at the savers discretion and can be accessed whenever, with no tax payable at its withdrawal.
\n3) Savings invested into the Cash Park ISA remain within the tax wrapper.
\n4) It is available for both new money, or to switch existing investments.
\n5) Interest is paid monthly at 0.2% below\u00a0 the Bank of England bank rate (subject to a 20% charge to HM Revenue & Customs)
\n6) The degree of flexibility means that the investor can manoeuvre through an unstable financial landscape until the market settles and investor confidence returns.<\/p>\n

Although congressmen on both sides of the bi-partisan divide are working towards solving the bigger questions facing the American economy, there are no clear indicators of a solution on the horizon at present. As investors contemplate slow global growth, the first year of Obama\u2019s Administration could be difficult, while the second full term might see steady improvement to stocks and shares.<\/p>\n

This may prompt Investors to find a haven to ride out the storm of uncertainty, in order to be well placed to capitalise when the market eventually recovers.<\/p>\n

It was a bold assertion by President Obama to suggest that the \u2018best is yet to come\u2019. Nonetheless, there will be many global investors who will be hoping that his success at the voting booths will mirror their success in the marketplace.<\/p>\n

The eligibility to invest in an ISA will depend on individual circumstances, and all tax rules may change in the future. It should always be remembered that the value of investments can go down as well as up and you may get back less than you invested.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Four more years in the White House and Barack Obama reckons \u2018the best is yet to come\u2019. Does the market support his optimism? Can investors find opportunities to shelter from the storm? The re-election of the 44th President of the United States has never been more significant to global investment understanding. While in some quarters 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more years in the White House and Barack Obama reckons \u2018the best is yet to come\u2019. Does the market support his optimism? Can investors find opportunities to shelter from the storm? The re-election of the 44th President of the United States has never been more significant to global investment understanding. While in some quarters…","_links":{"self":[{"href":"https:\/\/inspiredeconomist.com\/wp-json\/wp\/v2\/posts\/7637"}],"collection":[{"href":"https:\/\/inspiredeconomist.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/inspiredeconomist.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/inspiredeconomist.com\/wp-json\/wp\/v2\/users\/40"}],"replies":[{"embeddable":true,"href":"https:\/\/inspiredeconomist.com\/wp-json\/wp\/v2\/comments?post=7637"}],"version-history":[{"count":0,"href":"https:\/\/inspiredeconomist.com\/wp-json\/wp\/v2\/posts\/7637\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/inspiredeconomist.com\/wp-json\/wp\/v2\/media\/7638"}],"wp:attachment":[{"href":"https:\/\/inspiredeconomist.com\/wp-json\/wp\/v2\/media?parent=7637"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/inspiredeconomist.com\/wp-json\/wp\/v2\/categories?post=7637"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/inspiredeconomist.com\/wp-json\/wp\/v2\/tags?post=7637"},{"taxonomy":"adace-sponsor","embeddable":true,"href":"https:\/\/inspiredeconomist.com\/wp-json\/wp\/v2\/adace-sponsor?post=7637"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}