A victory by Republican Mitt Romney in the presidential race would boost the medical device, defense, telecommunications, financial services and transportation sectors of the stock market, according to CNNMoney.
Medical device companies would benefit from Romney’s pledge to repeal the healthcare reform law. That would take away the 2.3 percent excise tax these companies would pay under Obamacare.
As for defense, Romney has put it off limits for spending cuts. Defense stocks wouldn’t do badly under President Barack Obama, Carter Leake of BB&T Capital Markets tells CNNMoney. "But if Romney wins, I would expect a bigger, more aggressive and immediate pop for defense stocks."
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Telecom stocks would thrive because many of these companies pay out large dividends, and Romney promises to exempt dividends from ordinary income tax rates.
On the financial front, "I would expect financial stocks to trade up under a Romney administration because the regulatory environment will probably be less aggressive," Jim Russell of U.S. Bank Wealth Management tells CNNMoney.
As for transportation, many analysts believe Romney would get companies, particularly retailers and technology firms, to start spending some of their cash hordes. That would mean increased production, which in turn would call for an increase in shipping.
While a president can obviously affect the stock market’s fate, some experts say the stock market will determine the election’s fate.
In 80 percent of presidential elections since 1900, when the Standard & Poor’s 500 Index rose in the three months prior to Election Day, the incumbent won, according to S&P Capital IQ.
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