'He'll Cause More Damage to the Stock Market and Even Make Jimmy Carter Look Good'

Anyone jittery of the stock market would do well to read that headline, step back and assess your portfolio now before it's too late.

If you think the economy is weak now and have hope Barack Obama will change things, think again.

You'll be in for a nasty surprise by this time next year.

New Threat: The 'Obama Market'

Of course, simply noting this will inspire charges of fear-mongering!

As if investors didn't have enough to worry about, a new land mine is lurking: "the Obama market."

That's what I heard over the weekend from a veteran investment adviser, Charles Allmon. "Political ramifications represent a significant added market risk that should not be ignored," he says.

Initial polling suggests that Senator Obama will be the next president, a view Mr. Allmon shares. An Obama presidency is certain to mean a big tax increase, he says. He also points to the likelihood that the senator will seek to raise the marginal tax rate to 52% from 39.6% and hike the capital gains tax rate to at least 25% from 15%.

"He'll cause more damage to the stock market and even make Jimmy Carter look good," Mr. Allmon says. "Senator Obama is leading a children's brigade, but the problem is children shouldn't be leading this country."

Wall Street, they say, is a young man's game. Try telling that to our 87-year-old worrywart, who has been doggedly tracking the stock market for more than half a century and who offers a compelling argument that money managers in their golden years still have the brain power and analytical savvy to strike gold.

Mr. Allmon, who manages about $200 million of assets — individual, pension, and profit-sharing money — is outperforming this year's crummy market, with a modest gain, he says, of between 1% and 2%. He attributes this showing to a conservative investment strategy, notably huge cash reserves (currently at 80%).

"You have to be crazy not to be conservative in this kind of market unless you're willing to take a bath," he says.

Read the rest and watch your wallet.