“Market turmoil gets Barack Obama elected. He knows this and more importantly, so do his supporters. A survey released by Prince and Associates, shows that 75% of voters worth $1 million to $10 million are favoring John McCain, but of those voters worth more than $30 million, two-thirds support Obama. It’s no secret that the majority of uber rich individuals despise the current administration and are willing to do whatever they can to get new blood into the White House; even if it comes under conditions of an economic collapse,” Jason Schwarz writes for Seeking Alpha.
“These Obama billionaires, led by famed market manipulator George Soros, would love to kill two birds with one stone. If they can get their man into the White House and buy back into the stock market at a once-in-a-generation low on November 5th they will be able to declare a double victory,” Schwarz writes.
“While the billionaire’s club lacks the actual resources to completely move the broad market, they definitely have the resources to start a snowball effect. In 2005, George Soros convened with his group of 70 super-rich liberal donors in Phoenix to evaluate why their efforts to defeat President Bush had failed. They came away from that meeting with a plan to push even harder for a victory in 2008. The recent overreaction in equity prices has been attributed to the hedge fund/mutual fund redemption crisis that caused record amounts of money to exit the market during the first half of October,” Schwarz writes. “Could it be that the big money had something to do with the panic?”
“So how should investors play this underlying market tussle? You’ll want to own the ‘babies that have been thrown out with the bath water’. There is a select group of stocks with pristine balance sheets and solid growth prospects who have been beaten down for no good reason,” Schwarz writes.
The Top 5 on Schwarz’s list:
1 – Apple (AAPL): $25 billion cash, 0 debt
2 – Automatic Data Processing (ADP): $1.5 billion cash, $66 million debt
3 – China Mobile (CHL): $31 billion cash, $4.96 billion debt
4 – Cisco (CSCO): $26.3 billion cash, $6.89 billion debt
5 – Ebay (EBAY): $3.64 billion cash, 0 debt
More in the full article, including Schwarz’s full list of 15 stocks, here.
[Thanks to MacDailyNews Readers “TowerTone” and “Jason R.” for the heads up.]
MacDailyNews Take: Regardless of the cause(s) of market turmoil, it’s nice to see Apple recognized as the most solid on a list of the most solid stocks.