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Socialism Vs Capitalism: New Chapter

|Includes: Ford Motor Company (F), GM, HMC, TM

The battle is nothing new ,but there is a new chapter.

It may be interesting to note that union membership is on the decline while government intervention in private enterprise is on the rise.

Is it a trade-off or a new chapter in the continuing battle?

The biggest examples of current government intervention is healthcare and clean energy which appear to be here to stay .

Investors who strongly believe in free enterprise will probably do well to take heed about government intervention. Any investor who makes bets that clean energy is just nothing but a fad may be making a real big mistake. It remain unclear on which bets the investor should make in healthcare. Should the investors stick to big pharmas or biotech drug companies or health maintenance organizations (HMO) or both.

I am not ready to deal with the current automotive industry as you should be aware about the emerging EV (electric vehicle) industry that may finally be ready for prime time by now. The EV industry is still heavily subsidized by the government, but should the investor bet against the government?

Any free enterprise based investor probably must understand one important constant, that is it is not wise to try to starve the government by shrinking all kinds of tax revenue bases as much as possible. Remember that nothing is as certain as taxes and death of (capitalist)? Government is always holding the upper hand over all kinds of capitalism. Always!

Don't kid yourselves!