Throughout history, as a new president takes office the stock market declines in anticipation of the new leadership. Normally, under both Democrat and Republican, the stock market increases and life goes on as usually. This does not mean that all sectors will do wonderful and have increases. Investors drive the stock market. Either investors put their money in tried and true companies or buy up stocks on speculations of what companies will be give them more profit. Now, with McCain as our Commander in Chief, there are some sectors that will begin to see profits over the next few years and a few that might be decrease.
McCain’s tax cut ideas would help corporations and individuals alike. The tax cuts that are in place by the Bush administration, McCain wants to keep and then decrease corporate taxes from 35% to 25%. This would aid companies in hiring more people and bringing down the unemployment rate. He wants to get rid of the Alternative Minimum Tax and increase dependents’ exemptions to $7,000. Along with this, he proposes a new way of filing for Americans. Under the new options, Americans can file as we have every year or choose to file with a flat rate of around 25% to 15%. With more money in their pockets, Americans will be able to spend more money, thus helping the stock market increase. Retail sales, car sales, and even home sales will increase with more money on the table for corporations and individuals.
The insurance sector will see an increase in profits. Offering tax credits of $5,000 to families to help them in finding their own health care coverage with give Americans that added boost to seek out healthcare plans they can afford. With more people buying health insurance, insurance companies along with the medical field will see increases.
Research and development efforts to aid against the fight of global warming will be there, but not to the degree that some may wish. McCain will listen to experts on both sides of the global warming issue and work to find solutions that will benefit Americans without draining their pockets.
Oil and gas is of course a huge sector and it is on the minds of every American as they fill up their tank. What happens here has a lot to do with how McCain can work with other countries in order to fill our need for gasoline. McCain will put more money into research and develop so America can find an alternative to gasoline or ways in which to drill and refine to reduce our dependence on foreign oil. Of course, this action will take time and gas prices are sure to go up for awhile longer before we see a change at the pump.
Overall, the market will do quite well with McCain at the helm and see a glide upward instead of downhill.