Stocks To Buy If McCain Wins

To maintain a sound portfolio, a smart investor must continuously assess the economic landscape, including any government regulations that may influence the business plans of the companies he owns. This year, the presidential candidates, John McCain and Barack Obama have differing policies and their political vision could shape many industries. In this John McCain installment of our presidential election portfolio, we’ll take a look at some of the sectors of the U.S. economy that will benefit if John McCain is elected. Although, both candidates would like to end our country’s continued reliance on foreign oil, John McCain strongly supports the decreased regulation of offshore drilling. John McCain is also against raising corporate taxes and likely won’t impose any “windfall” taxes on Big Oil. He has a longer-term view of the war in Iraq and is a proponent of strategic military spending. Furthermore, under John McCain, capital gains taxes will not increase and neither will taxes rise for higher-income families, allowing them to continue shopping at high-end stores. Three key sectors that could jump if John McCain is our next president are oil exploration, defense and high-end retail.

SECTOR 1
Oil exploration

Any of the large integrated oil companies, such as ExxonMobil and ConocoPhillips, will benefit with John McCain in office. However, a more lucrative play on energy could be found in the companies that actually find the oil and drill it from the earth. Halliburton Company (HAL) provides such services in oil and natural gas exploration, development and production. In recent years, oil exploration stocks have stalled as the locations to drill for the commodity have decreased or dried up. However, with lessened regulations, HAL would have plenty of opportunities to expand its operations and increase its market share. Long considered a dominant brand in the industry, HAL is trading near its 52-week low and has a 2.1% dividend (as of October 14, 2008).

SECTOR 2
Defense

If the United States continues in its dedication to support Iraq and keep a bulk of our troops in the Middle East, there will be a persistent need for military equipment and technology. This demand will prop up the defense sector and keep contractors like Raytheon Company (RTN) in production. Raytheon develops and produces military defense mechanisms, intelligence and homeland security systems. Its products range from missiles to surveillance equipment to aircraft control panels. RTN recently won a contract worth $678 million to upgrade radar systems at multiple airfields. The stock is trading near its 52-week low and has a 2.5% dividend (as of October 14, 2008).

SECTOR 3
High-end retail

High-end consumers will feel comfortable shopping at luxury outlets if they believe their revenues are safe from increased taxation. Nordstrom, Inc. (JWN) is a high-end fashion retailer, and unlike its competitors, such as Bloomingdales or Macy’s, Nordstrom is a leader in online sales. As customers shift to purchasing more of their clothing online, Nordstrom will profit from this increased traffic. People tend to forget that JWN also operates a line of discount stores that have been branded, Nordstrom Rack. These stores have been performing well, even in the recent market downturn. JWN is also trading near its 52-week low and has a 3.5% dividend (as of October 14, 2008).

INVESTING IN JOHN MCCAIN

These are not firm recommendations and there’s no telling whether or not John McCain will have the influence to enact all of his policies if he is our next president, but if the “Straight Talk Express” holds true to his position, these sectors should gain. A couple other industries to consider investing in with John McCain in the oval office are nuclear energy and pharmaceutical companies.