How will the stock markets respond to a new US president? Martin Delholm says the impact will be less than some people expect. But some sectors will benefit from a regime change. With Obama the clear favourite to win, Martin recommends three clean energy stocks likely to gain from new subsidies.
Investors need a solid defense right now, says Martin Denholm. This means holding high-dividend stocks. Consumer staples and telecoms industries are the best places to cherry pick strong companies. For a lower-risk alternative, try these two high-dividend ETFs (AMEX:SDY, PEY).
Recession is on the way, but don’t join the stampede out of the market. There are still ways to beat the bear. Martin Denholm has a simple five-point investment plan to profit in this downturn. 1) Go short. 2) Buy put options. 3) Sell call options. 4) Use bearish mutual Funds. 5) Buy reverse ETFs on vulnerable sectors.
The US House of Representatives has just passed legislation that lifts the ban on offshore oil drilling. This opens up most of the US coastline to exploration. Individual states now have the option to allow drilling between 50 and 100 miles off their shores. The problem is offshore drilling is unlikely to solve America’s energy crisis. According to the government’s own report, widespread offshore drilling would result in a price reduction of perhaps “two-tenths of one cent 18 years after drilling begins.”
Here are Today’s Smart Profits Notes for Wednesday, September 17th, 2008
Martin Denholm says wind power is taking off in the US. And big players such as T. Boone Pickens and Michael Blooomberg are throwing their weight behind the industry.
For investors who want to minimize risk in a relatively new industry, Martin recommends General Electric (NYSE:GE) and Siemens AG (NYSE:SI). These blue chips are making significant investments in wind energy projects.
Meanwhile, small-cap AeroVironment (NASDAQ:AVAV) is well placed in the emerging market of home and office-based wind power generation.
The airline industry has been one of the hardest hit by this summer’s run-up in crude oil prices.
British Airways (LON:BAY) CEO Willie Walsh says it’s “the worst trading environment the industry has ever faced.”
But crude oil’s retreat from its early-July peak has led investors back into the industry, says Martin Denholm in The Smart Profits Report.
And Martin’s colleague Marc Lichtenfeld has given potential investors two stocks to watch should the uptrend continue. Here’s more from Martin…