7 Stimulus Trades That No One is Talking About
Michael Shulman, February 28, 2009
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The 7 Obama First-Year Trades
The good old U.S. of A. is dead-broke and getting broker. And this will handcuff President Obama, as will the sharpest recession since 1981-1982. First-quarter GDP, we now know, fell 6.2% -- the sharpest decline in more than a generation. Therefore, we need to explore who will be hurt in his first year in office, not who will benefit from new spending because it will be negligible in 2009 and pales in comparison to the amount of wealth and spending power removed from the economy.
The bottom line here is to play the downside -- either an individual company in a sector that will be hit or an ETF for that sector. We've gotten a taste of the Street's reaction to an Obama presidency -- volatility when announcements are made, but a steady downward slide with lower highs and lower lows. And it is not over yet.
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