If Democrats are to win the mid-term elections...
The US mid-term election results will be out soon. Looks like Democrats are ahead in the polls. Who would be the likely winners and losers?
Losers
Losers
- Oil Majors: Democrats may start to dismantle a number of Oil/Energy-friendly legistrations put in by Bush and the Republicans. Also, expect more regulations that would hamper domestic explorations.
- Pharmaceuticals: expect that Democrats will push Medicare to directly negotiate pricing with the drugmakers, which would benefit generic drugmakers and hurt Pharmaceuticals.
- Discount retailers: Democrats, leaning towards anti-China policies and protectionism, may introduce legistrations that limit imports from China and development countries. These retailers will suffer from a reduced supply of cheap imports.
Winners
- Alternative Energy: In general, anti-bush/oil implies pro-alternative energy. Also, Democrats are believed to be more concerned about pollution and global warming, and this favors alternative energy development.
- Metals: possible protectionist legislation will favor metal stocks, e.g. US Steel.
Can you think or other winners and losers?
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