Investing in the Obama Recovery Plan

The main reason why President-Elect Barack Obama was elected was so that he could fix our crippled economy. When it comes down to it, it is always about the economy. Think back to past-Presidents. What are they remembered for?

FDR is remembered for The New Deal. Ronald Reagan is remembered for his economic reforms. Bill Clinton is remembered for transforming welfare and free-trade. What will Barack Obama be remembered for?

Obama promises to overcome this economic crisis that was “created” by President Bush. Whether you agree with that statement or not, Obama does have a plan for the White House. There are three main things that Obama has promised to investors. Investors and consumers alike will be encouraged to buy:

1. Anything green, especially the U.S. dollar
2. Anything with its “hand out”, especially the government
3. Anything like a cement truck

Obama is going to push alternative energy, municipal bonds and infrastructure. Here are three ways that you can invest in the Obama plan.

1. Go green. Obama is pushing hard for alternative energy. Petroleum is expensive and, for the most part, out of the control of the American people. Wind and solar power are expensive too. The cost curve is going down for alternative energy. Stocks in the alternative energy realm can be volatile. This makes it a prime arena for investors.

2. Buy American. Obama is trying to convince the country to buy more American products. If more people bought American-made goods, we could keep more money within our borders. Buying American products would stimulate the economy and get it breathing again.

3. Buy government bonds. Buying government bonds really hasn’t been all that popular in recent years. Investors can buy these bonds and get 10 percent back when they help out local communities. A Manhattan financial adviser, Lewis J. Altfest, recently asked, “Where does anyone come off giving you triple tax-free for a rate so much above Treasurys? It’s not an overstatement to say it’s unheard of.” This is the way to invest because the government is bound to really pay up to investors.

These are the three ways to invest under Obama’s plan. Obama will hopefully stimulate the economy enough to make these times better ones. Only time will tell if his plan will actually work.

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This entry was posted on Tuesday, December 2nd, 2008 at 10:59 am and is filed under Economy. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.