7 Trades To Make in Obama's First Year

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Trade #4:
The Health Insurers

To find money to pay for his health plan, and due to some good old common sense, Obama is going to pull out the stops to put pressure on health care price increases, first with Medicare and then on to everyone else -- including the insurers.

Also, the stock and bond markets have savaged their reserves and, made short-term credit much more difficult. And, of course, as unemployment increases and money gets scarcer, these outfits will insure fewer and fewer workers. And they are not high on the Democrats list for any kind of help. They are trading at historically low multiples but then again, they deserve to.

Recommendation:  Look at the puts on Wellpoint (WLP), heavily exposed to California and the state’s continuing depression in housing. If you don’t like Wellpoint, look at the puts on Humana (HUM).

Next: Trade #5 - The Consumer