Wednesday, November 05, 2008

Obama Policy And Sector Rotation

With much amazement today, most pundits were asking themselves what would be the Obama policies and what would be their impact on the economy and market in the days to come. I would have hoped the media would have asked those question prior to the election and not after.

One thing is important though, and it was best said by a Naval officer from Afghanistan about his service to this country, "I don’t do this for the Commander in Chief. I do this for my country, and I will continue to do so." The message in this is we all will continue to support this country and her president and certainly wish the best of success to President-Elect Obama as he navigates through these tough economic times.

As new policies are put into place though, there will be certain market sectors that do better than others. Consequently, as portfolios are tweaked going forward, increasing or decreasing exposure to the appropriate market sectors could be important. Following is a link to the Prophet.Net website that contains a graphic that details the trend in relative strength by sector/subsector. A snapshot of the graphic is contained below.

Lastly, Todd Sullivan's ValuePlays website contains a post on the "Obama Trade" titled So, The Election is Over Where to Invest that may be of interest to some readers as well.

No comments :