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7 Government actions that drive stock gains in the short-term
What is the fuss?
The government of a country makes decisions, and creates policies, to boost the country's development. These decisions, and policies, create tailwinds in certain industry sectors, which benefit select listed stocks in these sectors. If you track these government actions closely, you can take stock picking decisions in areas with tailwinds, and make disproportionate gains in the short term.
When a company announces a future strategy, it may or may not work out. But when a ruling government, which has a majority in the parliament, announces a budget allocation, or a policy, it usually translates into action. The news of government decisions, or their intention to act, is enough to trigger ground-level actions by companies. Many companies allocate a certain percentage of their roadmap to develop products that might become relevant after an expected government decision or policy is announced.
In this post, I lay down 7 government, and government body actions, which positively impact stock gains in the short term. Though long-term gains may also be there, the disproportionate short-term gains make tracking these 7 government actions interesting. Let's get started.