Despite already having a few trading days under our belts, the true 2009 investment year starts today.
That's because the 111th Congress convenes today. And their primary focus will be making you recession-busting profits in the stocks market, provide you know where to look. Of course, you should know where to look; infrastructure stocks - I haven't shut up about it for the past few weeks.
After the democratic-controlled troops shake off the lethargy of a well-fed winter, the next order of business is putting together a new economic stimulus with a major focus green infrastructure investment and green job creation.
The price tag? A scant three quarters of a trillion dollars.
The smart money is currently posturing to have some of that money wired directly to them. You can, too!
Here's what I mean.
The DIY Stimulus
When President-elect Obama took to the airwaves last weekend for the Democratic Party's weekly radio address, he underscored his plan to include massive investment in alternative energy and related infrastructure as a way to stimulate the economy and create three million new jobs.
The effort is being dubbed the American Recovery and Reinvestment Plan. And even before it's been debated or passed, it seems as though it's doing its job, albeit in an indirect way.
Since word of the new, infrastructure-focused stimulus has been circulating, stocks that could be involved in government-funded projects have been going crazy.
Look at this chart:
These stocks have shot up miraculously, from down ~50% in some cases to around and over 50%. All on word of this coming legislative package. And congress hasn't even taken a seat yet. They were still drinking nog and singing Auld Lang Syne as their conceptual stimulus went to work without them.
Now, the actual bill is about to be debated and decided upon, and the stocks are going to move even higher. So while the bulk of this stimulus is going to be aimed at job creation via government-funded green projects, by investing in the stocks conducting the projects you can make this a DIY stimulus.
Infrastructure Investments: A Lovers Quarrel Presents Opportunity
The coming infrastructure spending package was originally to be ready to sign when Obama takes office on January 20th. The most recent details from majority leaders say it'll take a month or so longer, meaning investors could be in store for a lucrative Valentine's Day surprise.
The reason for the delay is the same thing that always slows down Congress: partisan riffs.
While Democrats support the plan as a much needed deterrent to further economic deterioration, Republicans, according to Reuters, "are raising concerns the Obama stimulus plan may presage a new era of uncontrolled government spending."
Though Republicans are in favor of some of the fiscal measures in the bill, including a $500 tax cut to most working Americans, they're still going to try to stymie other aspects of massive government spending.
What's more, it's looking like Senate Democrats will be short two votes, leaving them with 57, due to the mess in the Minnesota race and the debate surrounding the Blagojevich appointment of Roland Burris to fill Obama's seat.
In an effort to iron out the wrinkles, Obama is meeting with Senate and House leaders from both parties. He's also slated to give a speech later this week to "stress the urgency of the crisis and what is needed to respond to it.
Here's what it all means for you.
Investors are just waiting to get back into the game after a financially bloody 2008 forced many to the sidelines or into purely cash positions.
Word of this stimulus has already begun to bolster the confidence of sidelined traders, as evidenced by the run on stocks in the above chart.
The potential for profit here is huge, as government cheese will be grated over multiple sectors, from renewable energy producers to water companies to construction conglomerates.
But the stocks can't rise incessantly, and you need to buying on the dips if you hope to take advantage. Partisan bickering over the next two months will lead to plenty of market uncertainty, which is likely to negatively affect stock prices. When this happens, you need to be ready to pounce, because these stocks are ready to make an extraordinary run.
In the past few issues of Green Chip Review, I've outlined some possible winners in this scenario and how investors can capitalize.
I have a full new report on the coming infrastructure stimulus, paticularly the water portion, and the one stock guaranteed to surge.
Call it like you see it,
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Nick





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