President Obama won the election pledging to spend hundreds of billions of dollars and pledging to enact new laws, while changing or removing old ones. Where that money goes, industries rise. Where budget cuts and unfavorable laws are passed, industries fall.
Companies that could benefit
- Caterpillar (CAT) - With infrastructure spending comes the need for heavy duty construction vehicles. Despite layoffs in early 2009[1] and a 4Q2008 earnings drop of 32% [2], look for Caterpillar (CAT) to benefit from any large infastructure investments in the United States.
- Renewable Energy companies are yearning to get more support from the government, but already Obama has given out billions in the form of tax credits and subsidies to Solar Power and Wind Energy.
Companies that could decline