Forbes to Moneynews: I See Investing Opportunities in Pharma, Tech and Retail

Wednesday, 04 Apr 2012 02:23 PM

By Forrest Jones and John Bachman

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Stocks are up lately but will rise even higher if Americans vote President Barack Obama out of the White House and regulatory and economic uncertainty eases its grip on U.S. businesses and financial institutions, Forbes magazine editor and former presidential candidate Steve Forbes told Newsmax.TV in an exclusive interview.

The European debt crisis could rekindle and rattle markets worldwide, or tensions in the Middle East could escalate into military conflicts and rock oil markets and economies everywhere.

But change in the White House will draw applause in U.S. financial markets, said Forbes, the president and CEO of Forbes Inc.

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"The growth will continue if people see there will be real change in the U.S. government come November and January, and it will obviously be affected by what happens in Europe, where they don't realize what makes an economy grow yet," says Forbes, adding Europe needs more business-friendly reform programs, which today consist of austerity measures like tax hikes.

"And there's going to probably be a blow-up in the Middle East, whose outcome we cannot predict today in terms of the impact it's going to have on the economy, but if markets foresee that there are going to be Reaganist changes, or positive changes in January, they will mark up values of assets."

So where does an investor go?

Index funds are a good choice, which are affordable venues that give investors access to certain markets and industries.

When it comes to sectors, look for where the added value is, either in new products or services or in companies taking time-tested products and services to market that benefit consumers differently than in the past.

"If you have time to study industries, you might find some pickings there. High-tech — huge promises coming there. Some very good things coming on the pharmaceutical side if the government allows it and even areas as dull as retail," said Forbes, who ran for the Republican presidential nomination in 1996 and 2000.

Editor's Note: Obama’s Last-Ditch Effort to ‘Fix’ America Will Cause the Unthinkable

Retail, for example, offers an array of attractive investments.

Take coffee.

"Look at one of the biggest performers in the past couple of years has been Starbucks. Coffee, not exactly a high-tech industry but if you do it value-added, if you do things right, even the most mundane things can have a good run if people are doing it right," Forbes says.

Editor's Note: Obama’s Last-Ditch Effort to ‘Fix’ America Will Cause the Unthinkable


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