Hope; solidarity; better health care and a new place for America in the world. For all the lofty aspirations America has for the new presidency, there are nonetheless many who will seek to profit from it. From the latest green startup to a major infrastructure play, stock soothsayers from all realms of personal finance are recommending “Obama portfolios” based on the sectors and companies they think will prosper during Camelot II. Typically, these involve picking sectors that investors assume will do well under an Obama administration: infrastructure companies, health care, solar energy, etc.
Of course, buying such stocks could turn out to be a truly bad idea; the history of the stock market is littered with examples of companies that founder when their sectors are supposed to be improving. But instead of trying to pick stocks based on what’s going on in the murky, compromising work of governing, we’ve got a broader and, we think, better approach: Which companies will bask in the reflected glory of the Obama cultural zeitgeist?
After all, the Obamas represent more than a mere shift in government; they represent a cultural and generational shift as well. Who’s to say, for example, that BlackBerry manufacturer Research in Motion won’t benefit from Obama’s iconic use of the device as much as Caterpillar will benefit from building shovel-ready infrastructure projects?
So starting with the opening bell on Tuesday morning, The Big Money is investing imaginary money in eight Obama-trend-surfing companies on our list. We’ll track that portfolio’s performance against the market as a whole and against a more traditional Obama portfolio. Our yardstick: Jim Cramer of CNBC’s Mad Money, who once asked Barack Obama to make him a sort of czar czar to cure all of America’s ails. In November, Cramer recommended his own Obama portfolio of 13 companies ready to benefit from the new administration’s policies. Cramer’s faves include John Deere (to benefit from new infrastructure programs), JPMorgan (best positioned in the troubled banking sector), and Wal-Mart (as consumers flock to value).
It’s Cramer vs. The Big Money—game on!
The Big Money’s portfolio:
Apple (due to Obama’s iPod use and general technophilism)
Hawaiian Airlines (the 50th state is now superchic)
J. Crew (Michelle’s famous ensemble on The Tonight Show)
Nike (Obama’s passion for basketball)
Pepsi (Obama, too, is the choice of a new generation)
Research in Motion (BlackBerry!)
Target (White House redecoration)
Town Sports International (Obama is a longtime member of Washington Sports Club gym)
Cramer’s Portfolio:
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Comments
pot/grass..lol
tell the bible thumpers - man created beer..god created pot..who do you trust...lmao...the only 2 reasons why pot is illegal are 1- gov't can't tax it cause you can grow it at home n 2- drug companies can't compete against THC..people on anti-depressive drugs..still kill themselves n others re prosac.. pot is an anti depressive...n there is not 1 case in the history of mankind of suicide/murder related to pot....it's impossible..also another impossibility is ADDICTION.. ya'll come on up to beautiful british columbia and we'll prove it to you.. i don't need viagra..i smoke a joint...david
Question for spackle
Spackle: Thanks for the comment. Not clear what you mean by "taken seriously." As the article states, we're pretty skeptical about the very prospect of a presidential portfolio. But forget us: What stocks would you suggest?
This has potential if taken more seriously
I think the idea of an Obama portfolio is a great one, but this topic wasn't taken seriously. Pepsi? Target? If the Big Money portfolio actually put more thought into companies that will do well, this feature would be a regular read for me. As it is, I'm done with it.