The Investment Thread
So what companies benefit the most if there is massive student loan forgiveness?
This is a great question. So what are the ramifications.
Could it actually be credit cards and banks? Those liabilities (student loans) have to be affecting their approvals on other (unrelated) loans. Those that weren’t even able to pay prior to the forgiveness program had likely see their credit score tank. Thus again affecting their ability to get other unrelated credit/loans.,
So, it will be sort of a broad impact., I think. I do think, while the economy as a whole won't get a massive boost, the market might, due to college degree holders being more likely to invest. (no data on that, just my gut.. wonder if I'm right).
I do think banks and financial institutions would be most likely to boost a little, but it won't be huge. But, everyone will get a little piece of the pie. One person may be better able to buy a car, another a TV, another invest. Who knows.
The good news, is that if it's just the US held loans (most likely scenario), it's already factored into debt bonds, so it won't really add to the deficit/debt. To me, the only question is on Authority, which I won't discuss here.
But, it (college tuition/room and board) is another one of those 'Really good or necessary for for society' things that the pricing is just waaaay out of whack.. like Housing.
Longer term, I think Healthcare is still a good play (other than PFE, I'm not really in it). Other eldercare services, but they're limited in terms of profitability (public outcry will eventually get too loud). I think Housing construction could boom down the road, but there needs to be more efforts in local zoning. Zoning issues is probably one of the biggest hurdles to lower housing costs to allow more first time buyers into the market. In my head, at least for the next 20 years, single family houses won't be the solution, especially on the lower end of the market. It needs to be duplexes, triplexes, and larger condo communities. You may even see some multigenerational households again (already seeing it). But, for growth/construction, it needs to be multi-complexes.
Then, eventually, sadly, when all of the boomers... um... age out... there will probably be housing market relief. But while you have two large generations (Boomers and Millennials), along with massive corporate ownership, and foreign ownership, it's a tough market without adding a LOT more housing stock.
The hurdle, is local zoning ordinances.