In Next Debate, Obama Faces Challenges on Key Issues
Losing ground to Republican Mitt Romney on a host of issues, President Barack Obama faces a serious challenge to put his re-election bid back on track when the two men face off on Tuesday in their second debate.**
In the (currently less likely) event of Romney winning the election (not just the debates to come), buy bonds - sell equities. Bonds do well under the GoP and equities deliver below par. Reverse if another Democratic win by Obama.
Plus, if Romney does take up residence in the White House, the $600bn deficit reduction required next year will come from spending cuts - not tax hikes. And the bulk of those spending cuts will be borne by the Pentagon. Sell defence.
On the other hand, another Obama term will see the deficit attacked on two fronts Ė tax hikes and spending cuts. Defence will again be the major recipient of budget slashes so selling defence seems like a good plan regardless.
Itíll be a tougher fiscal year for all Americans in 2013 under Romney than Obama as Romney/Ryan have a very specific and well documented approach to getting the pain out of the way quickly. Given the total deficit reduction required over the next 10 years currently stands at $6tn I donít see how either party can handle this without causing widespread pain over a long period for most. I have no political alliance whatsoever, just pointing out the fiscal and monetary impact of each party gaining office.