MoneyScope Talk: Investing in a New Regime

Losers in a Gore administration? Well, don’t look for oil stocks to necessarily shine.

What about other issues like taxes, interest rates, and inflation? These babies are even tougher to predict because changes here entail actions by the Federal Reserve — over which the president would have no real sway — or legislation which must go through Congress. Although Greenspan’s term isn’t over until 2004, some still suggest that Gore would increase government spending to such a degree that it would over-stimulate the economy.

George W. has proposed some rather sweeping tax cuts. If he’s able to get Congress to sign off on them, he also runs the risk of over-stimulating the economy.

The Fed chief will be watching like a hawk to see that economy doesn’t overheat. If it does, expect the Fed to raise interest rates — a negative for those looking to get a loan or a mortgage.

Anyway, go easy here. A lot of this is, shall we say, speculative!

Andrew E. Serwer is editor at large for Fortune magazine, where he originated and writes for the “Street Life” column. He’s also a regular commentator on National Public Radio’s nationally syndicated “Marketplace” program, has appeared on CNBC, CNNfn, Voice of America and PBS, and has published articles in TIME, Sports Illustrated and SLAM. For more, go to “Street Life” on

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