If Obama wins, stay in the market…

Here is what to expect under a Romney Ryan administration. First they sort out the financial clift taking place Jan 1. We can expect much of Ryan’s budget to be implemented.

Which means large cutbacks. Lost government jobs, and subsequent rise in unemployment. Energy will become deregulated resulting in the Keystone Pipeline Construction, and no holds barred fracking policy.

Bernecke steps down, and he will be replaced with someone who will reign in the economy, like Greenspan did in 2004 and 2005…. As the liquidity contracts, interest rates will rise and so will inflation.

The rise of interest rates will send shockwaves through Wall Street, where many large banks will find the higher interest rates destroy their business models and will collapse with no bailouts. We can be sure a bankruptcy bargain hunter, will not rescue them with borrowed cash. Stocks will plummet losing 20 -30% of their value.

After the crash, the only companies that will grow will be oil energy, and pharmaceuticals. The 2nd Depression will occur in 2014 , and one again 2017….

If you are totally in bonds, your money will be safe.