7 Trades To Make in Obama's First Year

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How to play and trade Obama's first year in office

It’s inauguration day!  Barack Obama will be sworn in as our 44th President of the United States this week with a lot in front of him.

Wall Street erroneously believes that an Obama stimulus package will mend the economy quickly and a turnaround will occur by mid-year. A trader who's a regular on CNBC pushed this scenario and, when asked what would spur the economy, he said "Uh, well, uh, you know, I am an optimist, you know." Many analysts agree with him and are holding on to the hope that some how the market will find a way to go up.

I disagree with the optimists -- strongly. What catalyst could spur this economy? It won't be the stimulus package, which may provide a temporary boost but is a drop in the economic bucket compared to the loss of wealth and credit the country has experienced. No $700 billion stimulus package is going to mitigate the $10 trillion to $12 trillion loss of the past 18 months.

Next: The 7 Obama First-Year Trades