Obama Portfolio - what should be included in it?
Obama has a strong positive attitude toward alternative energy. Should we invest in
solar stocks?
This nation is cleaning up the banking industry. Invest in beaten down finance companies?
What's in play for the next 4 or 8 years?
Answers
2222 points
readytoretire answered 10 months ago …
The first stimulus bill send most of the money to the states to help them cope with their bills, and a third is in tax cuts, so it is difficult to see too much coming out of this bill to invest in. The funds for road work, while large, are small compared to the industry. Wind and solar should do well. The main issue facing wind is the lack of transmission capability to get it to the grid. He has money for this, but it is not a fast thing to solve/build transmission lines. Smart metering companies will also get a boost.
The banks will come back regardless. The only thing he can influence is when and how fast. It will be several years before the house builders will start to look good.
Depending on how they handle the restarting of the economy, inflation could easily run wild. It will be difficult for the Democrats to turn the tap way down when there is still a large number of people hurting. But if they don't, we will overshoot and get to live with double digit inflation. So there will be opportunity in commodities.
As the economy comes back, it will be like the tide and lift almost all stocks. Only those deemed to have no anchor chain slack will go under.
4075 points
EthanR answered 9 months ago …
I recently heard that Bank of America is backed up with mortgage applications. Although many of these won't be accepted, it goes to show that eventually their earnings could come back. At around $5 a share, I have to think BAC is a long term play. Incidentally, it has nothing to do with Obama. Could be anybody in the White House now and the same thing would happen with BAC.
Read more from EthanR
3943 points
MNSL answered 9 months ago …
Some banks and alternative energy companies will benefit in the long run.
In addition some infrastructure companies will benefit in the long run.
During next 03 to 05 years neglected sectors, next rotating sectors, low cost business providers and consumer staple sector will benefit most. Some companies in these will emerge as global leaders in some areas surprise to many. Their cost will come down drastically in addition to local and global demand. As a result of this some emerging market companies will lose their market share in some consumer staple products. Some also could become bankrupt.
Some customers will turn to USA, Brazil, Argentina and Chile for their requirements sooner than later due to trade barriers, price control in some countries.
Companies such as Sanderson Chicken farms and General Mills will benefit most from the current mess.
