Three Sectors And Two Stocks That Could Benefit From “Hope And Change”
by Marc Lichtenfeld, Senior Analyst & Healthcare Specialist, Smart Profits Report
Dear Smart Profits Report Reader,
“It’s all the same…
Only the names will change”
– Bon Jovi
Ah, “politics as usual” - I knew it wouldn’t take too long before this age-old scenario reared its ugly head once again.
Having swept into office on a tsunami-like wave of goodwill, President Obama saw it evaporate this week after the House of Representatives passed the $819 billion spending bill along traditional party lines.
Partisan politics as usual.
With a mandate from a highly expectant American public to back them, it was hoped that Obama and his Democrat-controlled Congress would enact some meaningful changes on Capitol Hill.
Alas, the bill appears filled with more pork than the dumplings at the House of Nanking.
The fact that House Republicans did not support the bill and that their counterparts in the Senate will likely do the same is bad for investors.
Wait a minute! You just said the bill is pork laden. How could opposing it be bad for investors? I’ll tell you why…
Washington Loves Whine With Its Cheese
Thanks to the large majority that the Democrats hold in Congress, the bill or one very similar is going to pass. No issues there.
But by having a divided Congress, Washington is basically telling the American people that, despite Obama’s warm, uplifting rhetoric, nothing has actually changed. The two political parties are still sniping away at each other with gusto, blaming each other for the nation’s problems - past, present and future.
But in order for the economy and the markets to stabilize and get healthy again, we need some darn consensus. You know, the idea that everyone is actually on the same page and are working to fix things.
I know… what a terribly old-fashioned, optimistic notion.
But make no mistake… this is critical to the fragile public psyche.
Confidence Breeds Cash
The market - and to some degree, the economy - is the product of emotion and sentiment. Yes, there are certainly structural issues and flaws that cannot be ignored, but the fact is that if people feel hopeful that change is coming and that progress is being made, they will start to open their wallets. And what will start with a trickle will eventually snowball and will get the economy moving again.
That obviously doesn’t hide the fact that we also need large fixes to the economy and financial system. But consumer and investor sentiment is an integral element.
So that said, I’ll hop down off the soapbox now and get to the meat of the situation - discussing some stocks that could be beneficiaries of the government’s largesse over the next few years…
*********
Forget Oil… This Is The World’s Most Critical Commodity
For all the talk about oil, there’s another critical commodity that the world simply can’t live without. In fact, it may be even more important than oil.
Water.
Under the government’s spending plan, water projects will receive $8.4 billion. I believe this is one industry that will receive a major boost from the increased infrastructure spending, with governments around the world expected to shell out hundreds of billions of dollars over the coming years.
This is why recently added one of the financially stable, fast-growing companies in the industry to the Xcelerated Profits Report portfolio - one that enables water desalination plants to save significant amounts of money by capturing wasted energy and recycling it back into the system. Desalination will be a critical component if the world’s water needs are going to be met.
I can’t reveal the name of the stock to you here, but what you can do is check out how you can become a member yourself and start profiting from this and our other recommendations right away. We’ve got all the details here.
Here are some more potential winners…
These Two Sectors Are Set For Huge Cash Injections… And Here Are Two Firms That Could Benefit
Energy: Energy projects will receive nearly $40 billion worth of federal funds. A good chunk of this will go towards renewable energy - a big part of Obama’s energy plan.
FPL Group (NYSE: FPL) is the largest solar and wind energy provider in the U.S., and is the electric company for most of Florida.
It’s no secret that the real estate collapse has crippled south Florida’s economy. And Miami is the metropolitan area that will receive the most federal dollars for infrastructure projects. Any rebound in south Florida economic activity should bode well for FPL. The stock also currently boasts a 3.5% dividend yield.
Healthcare Information Technology: This sector will receive $17 billion. Even without the government cheese, I like this area, as it’s a necessary component for streamlining the healthcare system.
Consider a stock like Quality Systems (Nasdaq: QSII). Its earnings are projected to grow by 18% per year over the next five years, yet the stock is trading at 19 times forward earnings. QSII has plenty of cash, no debt, is cash flow positive and sports a 3% yield.
As we’ve said numerous times before here, there are quality companies that will not only survive, but thrive during the economic malaise. And although it may seem far off now, we will eventually return to an environment where many more companies have the opportunity to grow and reward their shareholders and employees.
In the meantime, our elected officials seem to be telling us (with half-hearted apologies to John Bon Jovi) that, “Bad medicine is what you need.”
Note to Washington: No, it isn’t.
Have a great weekend.
Marc Lichtenfeld
Upcoming Investment Conferences
THE 11TH ANNUAL INVESTMENT U CONFERENCE
MARCH 25-28, 2009
THE RENAISSANCE VINOY RESORT & GOLF CLUB,
ST. PETERBURG, FL.
The Annual Investment U Conference is one of the premier investment conferences of the year - and we’ll once again be returning to the beautiful Renaissance Vinoy in St.Petersburg, Florida, for the three-day event next March.
This is the 11th Investment U - and a host of the world’s top investment analysts have been given one simple mission this time around: To reveal their most profitable investment ideas for the next 18 months and show investors how to navigate a post-election, post-government bailout stock market climate and grow their money faster than ordinary investors.
Naturally, our own Investment Director Karim Rahemtulla will speak at the conference, as will our Healthcare Specialist Marc Lichtenfeld and Commodities Expert, Lee Lowell. Joining them will be Oxford Club Investment Director, Alexander Green, plus Associate Investment Director Louis Basenese. And from the Money Map Press team… Keith Fitz-Gerald and Horacio Márquez.
But I urge you to act quickly. The event typically sells out. And by registering today, you can grab the early-bird discount. To reserve your seat, or get more information (including the full list of guest speakers) just visit the website HERE.
You can also call: 800.926.6575 or 561.243.6276 (ext.106), or e-mail info@agoratravel.com if you have any questions.
|
Recent Articles:
Will Congress Say “Yes, We Can” To A New $825 Billion Stimulus Package?
Alternative Energy Sources Are Growing Fast
Three “Safe Haven” Sectors For Your 2009 Portfolio
How One Company's Groundbreaking "Cancer Blaster" Could Make You Rich
While the World Health Organization predicts 12 million people will develop cancer in 2009, this little-known company is fighting the surge with its amazing cancer-killing device...
Although most people know nothing about it, this "Cancer Blaster" has already saved thousands of people around the world... Like Ohio resident, Caroline Brubaker, who says "with just three, pain-free outpatient visits, I had my life back" or Richard Swanson of Arizona who ended up cancer-free after just 4 hours of treatment...
The best part is, the company recently discovered an extraordinary breakthrough that could go mainstream in a matter of days... Read the full details to find out how you can get in ahead of the event - and be on your way to booking truly incredible gains.
|
