"President Obama has stated that he's been studying Roosevelt's first 100 days and the way out of the current economic mess will look a lot like the New Deal," says David Fessler.
The advisory panelist for The Oxford Club explains, "Seventy-five years after Roosevelt's inauguration, I think we will soon see President Obama get the ball rolling on his version of the New Deal, focused on two very specific areas: energy and infrastructure." Here, he looks at stocks poised to benefit.
"Saving energy will be one of his first initiatives. It's what will give us the quickest bang for our buck. Better insulation in homes, programmable thermostats, fluorescent bulbs, more fuel-efficient cars, energy management systems for use in larger-scale commercial buildings and beefed-up public transportation are just a few of the ways to save energy.
"The government will likely offer attractive tax incentives to rally support. So who stands to prosper from such initiatives?
"Big blue-chip companies, like Owens Corning (NYSE: OC), maker of insulated glass and building insulation; General Electric (NYSE: GE), manufacturer of wind turbines, energy control and infrastructure products; and Johnson Controls Inc. (NYSE: JCI), maker of energy management systems (for buildings and vehicles) and hybrid vehicle batteries.
"Wind-, solar- and geothermal-energy companies stand to benefit, too, like First Solar (NASDAQ: FSLR), manufacturer of thin-film solar panels; Ormat Technologies (NYSE: ORA), a geothermal and recovered-energy power producer; and Vestas Wind Systems (OTC: VWSYF), the world's largest wind turbine manufacturer.
"Moreover, as new green sources of energy begin to come on-line, the nation's electrical grids will have to be upgraded to move the power to where it's needed. This is a huge undertaking.
"And the biggest winner will be ABB, Ltd. (NYSE: ABB), a provider of power and automation technologies. It's hard to think of a scenario where ABB's share price doesn't double in the next two years.
"In a nutshell, President Obama and his administration have a huge opportunity to turn this recession ship around before it runs aground. In the process, he can make a huge step toward weaning us off of oil, too. And put the infrastructure in place to do it."
Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.
Closing Bell: Economic Catapult for Thanksgiving & Black Friday (WMT, TGT, GRMN, GOOG, MSFT)
Deere up on Q4 earnings performance
Reid Hoffman: LinkedIn will go public (at some point)
Reader Comments (Page 1 of 1)
1-21-2009 @ 11:43AM
TX CHL Instructor said...
The New Deal took what would have been a one or two year sharp recession and blew it into a major economic disaster. So will Obama's New Deal, if he follows FDR's lead.
1-22-2009 @ 10:25AM
begintowin said...
I whole heartily agree with TX CHL Instructor on this point. FDR's policies exacerbated the depression for the American people.
When will government learn not to interfere in the free market by favoring certain industries like central banking.
Let the markets work!
2-06-2009 @ 4:17PM
FluxRostrum said...
Funding Green Energy Job Training for Veterans should be on the front burner.
http://www.youtube.com/watch?v=PwPb3cKZBKo