On Monday, President Obama accidentally reminded the world that his "flexibility" in a final term would allow him to govern more aggressively.
Here's how investors can trade along election polls:
Sell SiriusXM, Buy Sprint
SiriusXM (NASDAQ:SIRI) benefits from a secular lack of spectrum. But Obama is a big advocate of improving mobile broadband. It fits with the "integrated solution" mentality which he applies to social engineering: very few people are going to complain about Obama's legacy of making the Internet accessible. So in a second term, watch for him to get more aggressive in bringing data to the people, a struggle most vividly experienced by Sprint (NYSE:S).
Sell Corrections Corp, Buy Pearson
Let's postulate that Obama is an extreme social progressive. Further, let's imagine that he would like to reduce the monetary cost of prisons. This is bad for private imprisonment leader Corrections Corp (NYSE:CXW).
Obama laughed off a marijuana reform question in a Youtube event -- as astute movie watchers will recognize, sometimes humor early in the story foreshadows a plot twist in the end. Between a rethinking of retribution philosophy and an overhaul of drug enforcement, Obama could help put the flex on Corrections Corp in a second term.
Sell Chevron, Buy Lightbridge
Obama wants to end taxpayer subsidies for "Big Oil". Chrevron (NYSE:CVX) now refers to itself as "Big Oil", so I conclude Obama is bad for Chevron. On the other hand, Lightbridge (NASDAQ:LTBR) CEO Seth Grae expects regulatory approval to be personally signed by Obama's Energy Secretary Steven Chu, who is a friend of smart nuclear.
Lightbridge is a well-staffed micro-cap developing a safety / efficiency upgrade for existing (and new) nuclear power. To further grasp the criticality of upgrades in nuclear power, read this special report from Economist.
This Is Not A Comprehensive Perspective
There are other reasons to buy and sell every stock here. Obama's consolidated power after a re-election is just one of several. But it's an indicator less-covered in financial media, and therefore worthy of documentation.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.