The Simplified Investor

The economic visions of the presidential candidates in 2008 are dramatically different, and the contrast is most striking when they discuss taxation. Barack Obama will steal from the pages of English folklore and take from the rich to give to the poor; well, actually, to the middle class, who will benefit from major tax cuts. John McCain sees things differently, and he will cut taxes across the board - most heavily in the highest income bracket, who will see more than $250,000 pumped back into their wallets.

Source:Tax Policy Center via CNNMoney.com

In the battle for supremacy in the aircraft business, there are only two real players - Boeing Company (NYSE:BA) and Airbus (EPA:EAD).  These two companies compete for market share in commercial and military planes, with demand far exceeding each company’s manufacturing ability, and both have a long order backlog.  Some of Boeing’s customers, for example, will wait as long as five years before the planes they ordered are delivered.  And while they fill these orders, both companies must keep innovating.  As oil prices continue to soar, and airline companies like Delta and American Airlines struggle with tight margins, planes that fly faster, fit more passengers, and consume less fuel are at a premium.

And so each company has designed its own new super-plane - for Airbus, the A380, and for Boeing the 787 Dreamliner.  The Airbus plane has already debuted (its first flight was in October 2007), while Boeing continues to get hit by production delays, and the Dreamliner is optimistically scheduled for release in third quarter 2009.

Boeing 787 Dreamliner vs. Airbus A380

These days, times are tough in the middle market of the retail business. Luxury companies like Louis Vitton are doing just fine, as the rich keep spending regardless of the economic climate. And discount retailers like Wal-Mart are benefiting big-time from tight budgets in the lower and middle classes as consumers look to cut costs on discretionary items as their gas and food bills soar. But the middle men - companies like American Eagle Outfitters, The Gap, and Tween Brands - are suffering as their customers choose low cost alternatives, or make do with last year’s wardrobe.

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It’s been years since AMD has been a leader in any market. First, it challenged Intel in the battle for semiconductor supremacy - and lost, badly, watching helplessly as Intel’s superior technology reached 75% dominance of the microprocessor market by 2007. As Intel surged, AMD swooned, and made a fateful decision to diversify its business. The purchase of ATI Technologies in 2006 burdened the books to the tune of $5.6B - and investors punished the stock, which has dropped nearly 90% in the two years since.

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In the health insurance industry, the margin for error is slim.   Companies like WellPoint (NYSE:WLP) and UnitedHealth Group (NYSE:UNH) must pay particular attention to a single metric that separates the winners and losers in this massive market.  This statistic is the benefits expense ratio - also called the medical loss ratio - simply, the cost of providing health care to members divided by the revenues from the premiums paid by these members.

Benefits expense ratio, WLP and Competitors

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