What Companies Will Benefit from Obama's Vision?

"On this day, in this election, at this defining moment, change has come to America."

- President-Elect Barack Obama

Change has come to America. As we look forward and think about the changes President-Elect Obama is likely to propose to strengthen America, it is important that we also look at our own portfolio and ensure that they too are reflective of the coming changes if we are to take advantage of the historic opportunities "at this defining moment."

So what does the president-elect stand for? What changes will he propose when he begins his term in office? To answer these questions we need look no further than his acceptance speech:

For even as we celebrate tonight, we know the challenges that tomorrow will bring are the greatest of our lifetime - two wars, a planet in peril, the worst financial crisis in a century. Even as we stand here tonight, we know there are brave Americans waking up in the deserts of Iraq and the mountains of Afghanistan to risk their lives for us. There are mothers and fathers who will lie awake after their children fall asleep and wonder how they'll make the mortgage, or pay their doctors bills, or save enough for college. There is new energy to harness and new jobs to be created; new schools to build and threats to meet and alliances to repair.

When we break down the various challenges he notes in his acceptance speech we can make logical guesses at the companies or industries that will likely benefit from the expected changes.

"A planet in peril"

The PowerShares Cleantech ETF (PZD) invests in a veriety of cleantech companies.

"Wonder how they'll... pay their doctors bills"

Teva Pharmaceutical Industries Ltd. (TEVA) develops, manufactures, and markets generic (read: less expensive) pharmaceuticals.

The SPDR S&P Biotech ETF (XBI) tracks the total return performance of the S&P Biotechnology Select Industry index.

"There is new energy to harness"

The PowerShares WilderHill Clean Energy ETF (PBW) invests in companies that are engaged the advancement of cleaner energy and energy conservation.

Comments

[gabe borens...:]

This is another analytical nonsense.
I doubt that President Obama will be able to radically change the course of the U.S economy within the first two to three years.
The most important economic catalysts in place are 700 billion dollarsTARP which will provide 5 trillion dollars of stimulus to broad sectors once fully implemented -and of course the monetary rate implosion( now global) .
Allowing for some monetary /fiscal lag,the U.S economy is heading for a major rebound that will be undisputable by mid 2009.
For all of the financial sector paranoia,this is the sector that likely will lead the rally as it is the focus of the TARPand monetary "remedies".
President Obama ,a very charismatic and dynamic individual ,will likely get credit for events initiated by the current administration ,FED ,the Treasury and the Congress.
Remember ,there is nothing to fear but the fear itself.
We have identified the issues and are addressing them aggressively ,effectively and globally.

2008 Nov 07 07:35 AM

[blisterchicken:]

Well Gabe, what are the issues according to your vision.

For a lot of Americans the issues are the rampant greed that unfetter capitalism has wrought, the collapse of the dollar and a call for backing it with something real, and the loss of real jobs here in American because of NAFTA & PFTA.

Since our money was taken off gold, it has been tied to our ability to create wealth and produce goods. Well, what brainwave didn't see this comming when we farmed out most of our manufacturing jobs?

2008 Nov 07 10:31 AM

[Jarrod Jodoin:]

On Nov 07 07:35 AM gabe borenstein wrote:

> This is another analytical nonsense.
> I doubt that President Obama will be able to radically change the
> course of the U.S economy within the first two to three years.

>
> The most important economic catalysts in place are 700 billion dollarsTARP
> which will provide 5 trillion dollars of stimulus to broad sectors
> once fully implemented -and of course the monetary rate implosion(
> now global) .
> Allowing for some monetary /fiscal lag,the U.S economy is heading
> for a major rebound that will be undisputable by mid 2009.
> For all of the financial sector paranoia,this is the sector that
> likely will lead the rally as it is the focus of the TARPand monetary
> "remedies".
> President Obama ,a very charismatic and dynamic individual ,will
> likely get credit for events initiated by the current administration
> ,FED ,the Treasury and the Congress.
> Remember ,there is nothing to fear but the fear itself.
> We have identified the issues and are addressing them aggressively
> ,effectively and globally.

You don't think Obama will be able to leverage that charisma (not to mention a Democratic majority in the House and Senate) to get legislation passed that would promote clean energy generation and help to create new jobs in the “cleantech” industry?

2008 Nov 07 02:35 PM

[WAKEUP:]

Obama will spend his first year getting a painful education in economics, a subject (among others) in which he is woefully unschooled. Then, having realized that he should have been an English teacher, he will ride lower and lower in ratings until he goes the way of Jimmy Carter (another president who should have been a teacher.) We're in a ten (10) year hole, here, and it make no difference who the president is, ten years is ten years.

2008 Nov 07 02:36 PM

[Kayboe:]

TEVA will shine as very bright spot in the generic drug arena -in an otherwise terrible stock market. So too will the ETF's XBI, (biotech) and PBW, (clean energy). Previous comments herein provide solid contratrian fodder. Just hold your nose and buy'um.

2008 Nov 11 11:26 AM