Free Stock Market Investing Tips

The 2008 election season has not fully started yet, but it is something to think about over the next few months. Depending on who you think will win, John McCain or Barack Obama, you may be more inclined to put money in the market or stay on the sidelines.

It’s no secret that Republicans are better for business and the stock market in general than the democrats. Republicans favor lower taxes on capital gains, so your net take-home profit is higher from investments with Republican leadership than with the Dems. Obama has stated he will likely raise the capital gains tax to between 20-28%, something that will deter investment but won’t eliminate it altogether.

There are other reasons to fear an Obama presidency. His anti-business stance isn’t exactly a secret, and combined with a democratic leadership, could create a wealth of burdensome government regulations that eat away at profits and bring the economy to a standstill. Some businesses might actually do better with an Obama presidency, particularly solar, as Obama’s energy policy is to put about $40 billion towards developing renewable energy, paid for by increased taxes on oil businesses and other businesses.

In short, who you think will win the election is something to consider when investing over the next few months. Who our president is, more so than anything, may have a bigger effect on the stock market in 2009 than anything else.