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Obama Picks: Building an "Obama Stock" portfolio

Gary Sattler — Wed, 05 Nov 2008 16:52:00 EST

Filed under: Forecasts, Other Issues, Politics, Green Stocks, Obama Picks

Here's is my quick form strategy for investing during an Obama presidency:

Health care stocks should perform well under an Obama administration. It has been made clear that within the next four years our healthcare system shall be taking on a radical new form. There is certain to be a massive infusion of new money into the sector. I would hasten to clarify that pharmaceutical stocks might not be the angle that you want to play here. I would lean more towards hospitals and long-term care providers. Check out this analysis from Kiplinger, to get yourself started.

Next, I'd be looking at infrastructure plays. I'd focus on materials, procurement, and construction, as they relate to roads, tunnels and bridges. This play will be more dangerous in the near term, as these types of expenditures will be more dependent on governmental budgetary processes, rather than executive edict. Jim Cramer recently offered some input about infrastructure. You might want to check out his suggestions. Then, you can find information about building an infrastructure position at TheStreet.com. Additionally, here's a great list of infrastructure companies which has been provided by Seeking Alpha.

To me, perhaps the most important investment angle to play through the next administration will be alternative energy stocks. I expect that there will be a great deal of money moving in there. Ethanol is said to be a sure thing. I myself am not so positive about that. Oh, we can be sure that there will be plenty of ethanol to go around. However, I don't see much financial return in it at the investor's level. I lean towards solar plays, and to a lesser degree, I like wind power. You can get a good feel for alternative energy direction by reviewing The Pickens Plan. There is no shortage of companies to invest in if you're looking for alternative energy plays. You can easily start your stock picking hunt by checking out the companies which are included in the Wilderhill Clean Energy Index.

As always, stock portfolio success begins with good research. Hopefully, I've given you some quality leads to get started with. When all is said and done, history clearly shows that the markets flourish under administrations controlled by the democrats. Let's hope to God that this time around won't be the exception.

Obama Picks: Building an "Obama Stock" portfolio originally appeared on BloggingStocks on Wed, 05 Nov 2008 16:52:00 EST. Please see our terms for use of feeds.

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Should Congress invest $50 billion in T. Boone Pickens' Plan to expand wind power?

Joseph Lazzaro — Thu, 30 Oct 2008 18:00:00 EST

Filed under: Other Issues, Industry, Amer Intl Group (AIG), Politics

If you're an economist, like David H. Wang, you wake up some days muttering, "What has happened to the industrial base in the U.S. economy?"

The auto companies are practically on life support, and other sectors are paring-back operations, even as international competition mounts. Hundreds of thousands of jobs have been lost. How did this happen? Eight more years of industrial base decline without a viable plan to counteract it? And now, as a result of the financial crisis and de-leveraging, the prospect of a period of less-available credit threatens to delay economic recovery.

Well one remedy for the above, Wang argues, is to invest in the industrial sector via investing in the United States' infrastructure. And what's one project worthy of consideration? Investor T. Boone Pickens' plan to substantially increase domestic wind power via his Pickens Plan, Wang argued.

Pickens' investment fund has fallen on tough times, as of late. His BP Capital investment fund has shrunk by 60%, due to energy sector losses, and will drop to about $500 million after redemptions, by week's end, Pickens told CNBC Thursday. Pickens, who sees oil sector consolidation, expects the price of oil to recover to $100 per barrel in 2009. Oil Thursday closed down $1.81 to $65.69 per barrel.

Pickens Plan: a better investment than AIG?

Wang is less certain about a $100 oil price in 2009, but he is certain about the merit and benefits from investing in Pickens' project, and his argument is compelling. (Wang added that he does not have an investment stake in any power/energy company.)

Continue reading Should Congress invest $50 billion in T. Boone Pickens' Plan to expand wind power?

Should Congress invest $50 billion in T. Boone Pickens' Plan to expand wind power? originally appeared on BloggingStocks on Thu, 30 Oct 2008 18:00:00 EST. Please see our terms for use of feeds.

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Pickens Plan: One piece in U.S. transportation energy puzzle

Joseph Lazzaro — Thu, 24 Jul 2008 15:30:00 EST

Filed under: Consumer Experience, Ford Motor (F), General Motors (GM), Commodities, Oil

Billionaire oilman T. Boone Pickens has launched a new campaign to substitute at least a portion of the U.S. imported oil with domestic natural gas.

Pickens would like renewable energy sources, wind power chief among them, to run electric power generation plants currently run by natural gas/coal, and use that natural gas to fuel natural gas vehicles.

Economist Glen Langan told BloggingStocks Thursday the PickensPlan is commendable for a number of reasons (it would lower the trade deficit, create domestic jobs, and decrease greenhouse gas emissions), but investors and readers should not view it as a panacea for the nation's transportation energy bill. "It could be a part of the solution, but it won't address the entire imported oil problem," Langan said.

Another oil saver: better engines

What's another key to reducing both imported oil and U.S.-produced oil consumption? Something that the U.S. auto sector has under-emphasized for more than a decade: technology-driven increases in car/vehicle efficiency, Langan said.

Langan said vehicle weight reduction, transmission/drive train improvements, enhanced aerodynamics, and the biggest factor -- increased engine efficiency -- "have the potential to reduce oil imports by almost as much as the Pickens Plan, and the changes won't take 10 years to see the results."

Further, many of the mpg-enchancing technologies already exist, Langan notes; he suggested an additional federal tax credit for automakers to help them incorporate the changes sooner.

"The fleet [all vehicles driven in the U.S.] should average 25-27 miles per gallon right now. Currently we're at about 20 miles per gallon. With appropriate federal tax credits we could be at 30-32 miles per gallon in five or seven years," Langan said.

Continue reading Pickens Plan: One piece in U.S. transportation energy puzzle

Pickens Plan: One piece in U.S. transportation energy puzzle originally appeared on BloggingStocks on Thu, 24 Jul 2008 15:30:00 EST. Please see our terms for use of feeds.

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