Trend: Alternative energy and infrastructure ETFs stand to gain from President elect Obama's economic plans.
ETF Expert Gary Gordon recommends ETFs that will rise from Obamas economic plan. Excerpts below.
Link: ETF Expert: Obama Plan Affects Infrastructure ETFs, Oil ETFs and Alt Energy ETFs.
...President-elect Obama gave us a glimpse of his economic team, substantially lifting equities. And on Monday (11/24/08), we received greater certainty about the Obama job creation plan.
Not surprisingly, many of the items that Obama mentioned the most on the campaign trail, as well as in the outline of the job creation plan (i.e., infrastructure and alt energy), outpaced the markets at large. Here's a rundown on how the 5 Obama ETFs performed over the last 2 trading days.
5 Obama ETFs Approximate 11/21-11/24 Powershares Dynamic Energy Exploration (PXE) 23% iShares Goldman Networking (IGN) 13% iShares MicroCap (IWC) 10% iShares Medical Devices (IHI) 8% Powershares Clean Tech (PZD) 16% Average Gain in 2-Day Rally 14% S&P 500 SPDR Trust (SPY) 13%
There's not a lot of genuine rationale behind the movement, beyond a bump in confidence. That said, the President-elect is going to get most of what he asks for from a Congress that is heavily in his corner.
And that means... when Obama says we are going to be rebuilding the nation's physical infrastructure in a greener, cleaner way, you can expect Powershares Clean Tech (PZD) to benefit. PZD is a "greener" take on infrastructure. “Cleantech" companies are those that derive the majority of their business from products or services that improve productivity or performance while reducing costs, resource consumption, pollution and toxicity.
It also means that, while Obama stresses the sensible creation of alt energy, he's aware that the country must also gain access to some traditional sources of non-renewables, including natural gas. And that means good things for the PowerShares Dynamic Energy Exloration Production Fund (PXE).
This energy ETF is geared to smaller companies, rather than "Big Oil." With very attractive P/B and P/E ratios, and probable stimulus for small businesses, PXE stands to benefit from both the search for offshore oil as well as the acquisition of natural gas, an alt energy favorite.
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