The presidential election is coming up this Tuesday and the world is
fixed on the results of the election. Whether it be Obama/Biden or
Romney/Ryan doesn't matter... because there's a lot of work to be done
and no one man will be able to change the economic outlook for the US or
the global economy. The International Monetary Fund (IMF) just released
its assessment of the global economy and identified two critical issues
that could effect the recovery of the global economy. The euro-zone
crisis and the "fiscal cliff" threat faced by Europe and United States,
respectively.
Europe needs to contain its money woes and increase
stability for its currency. The country is experiencing "capital flight"
where the money is leaving the country in search of a safe haven.
Normally, the United States would be a sure safe haven but we also are
experiencing our own woes in the form of pending tax increases, raising
the debt ceiling (for about the 11th time in 8yrs), and automatic
spending cuts. The United States has raised its debt ceiling for over
140 times since 1940 - Office of Management and Budget.
The
IMF expects advanced economies to grow at least 2% - which the US has
done, but unfortunately most of America's growth is due to government
spending on mostly military goods/services. Which is somewhat
interesting since the spending has been done right before an election
year. Nevertheless, unemployment remains high and companies continue to
hoard cash due to uncertainty running amok in the marketplace.
A Solution for You:
There is a way for you to take advantage of this situation for your
own benefit. Invest in commodities such as oil and agriculture products.
Investing in commodities is how you can make some money no matter who's
elected or if the economy turns up for the better or turns down for the
worse.
If the economy gets worse, central banks will print even
more money trying to stabilize the global economy... the result of their
printing will devalue the currency and cause prices to increase. When
prices increase your investments increase. If the economy gets better,
then the increase in demand for commodities will increase as people will
have more money to spend and corporations will need to use more
resources for expansion.