President-elect Barack Obama plans to renew America’s information superhighway. This means huge investments in the country’s broadband network. David Newman says there will be big profits for this tech ETF (IGN).

This from Sovereign Society:

We’ve just learned that President-elect Barack Obama’s economic team is considering an economic-stimulus program that will be far larger than the two-year, half-trillion-dollar plan under consideration last week.

Obama aides and advisers now say US$600 billion over two years is “a very low-end estimate”. The final number is expected to be significantly higher, possibly between $700 billion and $1 trillion over two years.

I wonder what the number will be next week…two trillion?

Today I want to talk about some of the other sectors that will benefit big when Obama is sworn in next month, and how you can benefit from one simple investment as this money begins flowing.

Obama said the package will include an initial tax cut and a massive infusion of funds for a number of things; roads, bridges, water systems, school repair, spreading broadband access, promoting health-care information technology, improving energy efficiency in buildings, renewable-energy projects, and assisting struggling state and local governments.

While campaigning, Obama often pledged, “To renew our information superhighway”.

By following through on this promise - which I believe he will - he can help stimulate the national economy, inject capital in the struggling state and local coffers and appease his “green constituents”.

Check, check, check…three more off his list.

Let’s start with increasing our broadband access. This would include huge projects to bring broadband into many rural areas of the U.S., funding for new computers for schools and technologies that can help reduce medical costs.

Broadband expansion is likely to be a priority for Obama’s administration. Although the U.S. currently has about 75 million broadband users, it is a pitiful 15th out of 30 industrialized countries on broadband adoption. In a recent speech, Obama called the level of access in the U.S. “unacceptable,” going on to say:

“Here, in the country that invented the internet, every child should have the chance to get online, and they’ll get that chance when I’m President - because that’s how we’ll strengthen America’s competitiveness in the world.”

The plan’s overall cost is expected to be in the hundreds of billions of dollars, so the amount of money that will be made available for IT-related investments could be quite large.

Obama also said he wants to ensure that every hospital and doctor in the U.S. “is using cutting-edge technology and electronic medical records, so that we can cut red tape, prevent medical mistakes and help save billions of dollars each year.”

“In addition to connecting our libraries and schools to the internet, we must also ensure that our hospitals are connected to each other through the internet. That is why the economic recovery plan I’m proposing will help modernize our health care system - and that won’t just save jobs, it will save lives..”

Remember, the printing presses are primed and running. He has told us all that deficits will just have to wait a few years, stimulating this economy is the most important thing.

“We’ve got to make sure that the economic stimulus plan is large enough to get the economy moving,” Obama said last week on “Meet the Press.” Even with the country $1 trillion in debt, Obama said, “We can’t worry short-term, about the deficit.”

So where should we look to benefit from this huge investment in broadband and medical information technology?

iShares runs a good ETF that focus exactly on this sector - S&P North American Technology - Multimedia Networking Index Fund (NYSE:IGN) This index was created as a benchmark for U.S. traded multimedia networking stocks and includes companies that are producers of telecom equipment, data networking and wireless equipment…making it a perfect fit for this part of Obama’s plan.

The share price and performance of the fund have been less than stellar, but I believe this is finally going to change. Its top 10 holdings include: Qualcomm, Cisco, Juniper Networks, Foundry Networks, F5 Networks, Motorola, Harris Corp, Tellabs, Polycom and Corning.

These companies make the equipment and are leading providers of high-performance enterprise and service provider switching, routing and Web traffic management solutions. They are leaders in communication and collaboration, tele-presence, video conferencing, wired and wireless voice conferencing…exactly what we need to achieve Obama’s stated goals.

If President Obama is true to his word - and again, I believe he will be - then these companies will benefit from the billions and billions to be spent in their areas of expertise.

A buy at these levels could reap you huge returns in the coming year. Hold on tight, as the ride won’t be an easy one. Big money is going to flow into this area and these companies will benefit from it.

Source: Big Profits are Going to be Made… if you  Just Read Obama’s “Fine Print”