Are there stocks to overweight or underweight (financial, health care) given the economy?
In analyzing financial stocks, I would be sure to understand the federal government’s position on the institution’s balance sheet. In many cases, the government would have to receive priority returns before common stock investors. It may take a very long time to satisfy a financial institution’s obligations to the federal government. In analyzing health-care stocks, investors should consider government efforts to control health-care spending. While demographics are favorable to more health-care expenditures, price controls tend to limit the supply of products and services (despite demand) and reduce profits. As some economists say the end of the recession is in sight, is this a good time to start a company? Good ideas and good people can come together to start a company during any economic cycle. A key question is, “Is there a viable market for your product or service?” A second is, “Where are we going to raise capital?” How can investors be sure they don’t invest in a scheme such as t
