Sectors and Stocks

Please read the post before this one if you are a first-timer on this web log.

Today's post is on Environment Scanning of Sectors in order to make top stock picks.

It helps if you follow politics, because nothing affects Sectors more.

You may like to think that technology drives the Healthcare Sector. However, a government may favor copiers, and thereby penalize stocks that depend on patents.

The Communist movement in India has destroyed all hopes of the dying uranium industry in the U.S. However, even stocks of the most polluting and obsolete nuclear power companies in America will benefit if the 2009 elections return another Washington-friendly government in New Delhi.

Argentina, Peru, and Venezuela are other countries which affect stock markets in both the U.S. and Canada, every time they move a little left of their national centers of politics.

The effects of politics are not always negative. U.S. corporations stand to gain the most once the Fed lifts sanctions against Cuba, Iran, and North Korea. That is also why the U.S. has never taken punitive actions against China, all the way from Tibet to Tiannamen Square.

Do not worry if you are a novice at politics. Here are two typical links to study equations between Sectors, politicans, and your stocks:

http://www.opensecrets.org/

http://www.independent.co.uk/news/uk/home-news/blair-used-irresistible-pressure-to-halt-investigation-into-baesaudi-arms-deal-782541.html

Politicians are not the only villains of Sector effects on stocks. Sectors are made of industries. Some industries are driven by brands.

Branding and stock links are subjects for tomorrow's post.

Thank you for returning tomorrow to continue a dialog on the profitable business process of Environment Scanning for crafting Strategy.

Please email

stockway.myview@gmail.com

or leave a post below if you would like to contribute your insights on how politics affect stocks of specific Sectors. Inputs or any other matter are equally welcome.

Trade safely in the volatile markets of Monday May 26 2008: rest well if you invest in the U.S. stock market, while your peers in other countries have a memorable working day.