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The Obama Portfolio: 'Dirt Cheap' Ag, Infrastructure Stocks Best Positioned

Posted Nov 05, 2008 07:00am EST by Aaron Task in Investing, Newsmakers, Recession, Biotech

Now that the votes have been cast, it's time to start thinking about what stocks will fare better under an Obama presidency.

Agriculture and infrastructure stocks are best positioned to benefit from an Obama victory, says James Altucher, managing partner at Formula Capital. In addition to Obama's pledged support for ethanol and infrastructure spending, Altucher says stocks like Mosaic, Potash and KBR are "dirt cheap" after getting trashed by hedge fund-related selling in September and October.

Giving the likelihood Obama will raise taxes on dividends, the fund manager and author also recommends closed-end muni bond funds like TS&W/Claymore Tax-Advantaged Balanced Fund and BlackRock MuniYield Florida Insured Fund.

While an unrepentant bull, Alutcher is less optimistic than other pundits about prospects for biotech and healthcare stocks under an Obama administration, as discussed in the accompanying video. Off camera, he also expressed similar lukewarm views on alternative energy stocks: "The second there is an alt energy bill, oil will fall to $40 -- then we don't need it anymore," he quipped.

(Disclsoure: Altucher owns shares of Mosaic, KBR, and BlackRock MuniYield Florida Insured Fund.)

172 Comments

Yahoo! Finance User
Yahoo! Finance User - Wednesday November 05, 2008 08:56AM EST

RICH GIRL FOR OBAMA I had suffered huge capital losses twice under the Bush administration when the market tanked the March we went to war and a few months ago. I could use the breather of a flat economy for a while. If most rich people had the same fate, they won't be paying taxes on capital gains anyway - you can carry forward your capital losses and deduct them. I predict I will not have to pay tax on capital gains for over 10 years due to this even if the market turns and I make a killing. Remember, part of why we are in this mess is because W would not raise taxes to fund the war and, therefore, borrowed money from other countries (the money had to come from somewhere) and now we will be paying a LOT more than if we had just forked up the taxes in the first place to "pay as we go" instead of owe more every minute in interest to foreign countries. Now, even if we pay more tax, most of it will go to build these countries that invested in us (i.e. paying off the loan and interest) and therefore the money will not be available to build America. I am glad Obama is looking at ways to strengthen America in parallel (put the oxygen mask on yourself first and others after that).

Yahoo! Finance User
Yahoo! Finance User - Wednesday November 05, 2008 08:57AM EST

this guy looks like Ron Spector nice hair

buckeye
buckeye - Wednesday November 05, 2008 09:02AM EST

Aaron Task if you would quit sucking up to Obama and give us unbiased opinions maybe I would believe you. You are clue-less when it comes to investment. Invest in Ireland, China and India countries which are pro business.

Chandler P
Chandler P - Wednesday November 05, 2008 09:03AM EST

I've never posted and am not a financially savvy person. I own my own business, (not a plumber) and do some investing. I find it interesting that some have doom perspectives, some are "half-fulls". The serious question, should be how our current president will help make the next president's start better. Can Bush finally pull his head out of Cheney and Rove's cheeks, be his own man and get it done? Wouldn't that be refreshing? Wouldn't that help the market?

An
An - Wednesday November 05, 2008 09:04AM EST

It was the Catholics who gave Obama the victory. They voted for "pro-choice" instead of their faith.

Yahoo! Finance User
Yahoo! Finance User - Wednesday November 05, 2008 09:06AM EST

First thing OBAMA needs to do is to remove ALL government subsidies for fossil fuels! That way, oil stays high and we smack it out of existence with alternative energy.

WesleyB
WesleyB - Wednesday November 05, 2008 09:06AM EST

Where do go to get my 'Free Gas" card and where do send my mortgage payment book so it can be taken care of? Happy Days are here again. I am going fishing now.

Yahoo! Finance User
Yahoo! Finance User - Wednesday November 05, 2008 09:08AM EST

The masses are asses and the asses have spoken! In my state foolish asses think the Dems are going to bring their jobs back from overseas - yeah right! In Argentina their socialist president just recently confiscated all worker's pension funds. Why? because they ran out of things to tax and need more money to fund their welfare state!

Brian
Brian - Wednesday November 05, 2008 09:12AM EST

"The second there is an alt energy bill, oil will fall to $40 -- then we don't need it anymore," he quipped. That is a typical Republican talking point. The truth to the matter is that oil is more of a national security issue now after having seen what high prices have done to the economy of Russia and their political posturing.

joe e
joe e - Wednesday November 05, 2008 09:14AM EST

To all you GREEDY , MONEY HUNGRY , NARROW MINDED , KNOW IT ALLS who can assume one president can change the entire structure of America , two words TOUGH LUCK ! wake up and smell the coffee

Warren
Warren - Wednesday November 05, 2008 09:18AM EST

Religion is the impotence of the human mind to deal with occurrences it cannot understand. Karl Marx Religion is the sign of the oppressed creature, the heart of a heartless world, and the soul of soulless conditions. It is the opium of the people. Karl Marx It's not surprising, then, they get bitter, they cling to guns or religion or antipathy to people who aren't like them or anti-immigrant sentiment or anti-trade sentiment as a way to explain their frustrations. Barack Obama I am not a Marxist. Karl Marx

norris_for_hire
norris_for_hire - Wednesday November 05, 2008 09:20AM EST

So, what is the point of double taxation on already taxed dollars, i.e. divident taxation? I mean, capital gains taxes at least make sense if you argue that wealth was created in the appreciation of an asset over your cost basis. But dividend taxation? That's taxing money the company has already paid taxes on and given to shareholders. Wealth isn't the problem, nor the accumulation for wealth. Why should my WWII era grandparent's be punished for accumlating a large estate because they saved feverishly and got the benefit of up years in the stock market? The problem is the government expenditures are out of line w/ revenues. Now I have fewer incentives to save or work hard since I'll be taxed hard by the Government if I should be so lucky to make more than $250K a year or accumulate $3.5 M after a lifetime of saving for retirement. I'm paying income taxes on my revenue, and the company has paid taxes on their revenue.

Whit Chambers
Whit Chambers - Wednesday November 05, 2008 09:20AM EST

Is it true that Katie Couric had an orgasim last night while reporting the election?

Warren
Warren - Wednesday November 05, 2008 09:22AM EST

But we will not be able to sustain this growth if it favors the few, and not the many. Barack Obama In a higher phase of communist society... only then can the narrow horizon of bourgeois right be fully left behind and society inscribe on its banners: from each according to his ability, to each according to his needs. Karl Marx Let the ruling classes tremble at a communist revolution. The proletarians have nothing to lose but their chains. They have a world to win. Workingmen of all countries, unite! Karl Marx I am not a Marxist. Karl Marx

Yahoo! Finance User
Yahoo! Finance User - Wednesday November 05, 2008 09:25AM EST

I am one of those "rich" Americans whose household makes over $200,000 per year (and who lives in a city and pays through the nose for real estate and everything else)...and who was hoping to start my own business in the next 1-2 years...but that's not going to happen now. I'm going to have less expendible income on top of it, which means I will spend less...with new capital gains tax, so I will invest less...but as long as the "middle class" is bouyed by Obama's new plan, I guess that's good for America? Of course, when there are no new jobs available to replace the jobs that have been lost...I'm not sure how anyone is going to find work again.

Yahoo! Finance User
Yahoo! Finance User - Wednesday November 05, 2008 09:33AM EST

I agree fully ibd.curtisjr. Time for those looking for a handout to get on their feet and work for a living. Heres your chance, Obama said he'd lower College costs, so get an education and get out in the workforce and pay those increased taxes were going to see for the next decade.

Eric W
Eric W - Wednesday November 05, 2008 09:34AM EST

Money will be fleeing the country. High interest rates, flat returns, higher capital gains and death taxes, less investment. You'd be happy if you were a large acerage corn farmer who just bought new equipment at a low interest rate and need to hire a lot of illegal immigrants.

Yahoo! Finance User
Yahoo! Finance User - Wednesday November 05, 2008 09:35AM EST

I predict more u.s. involed wars in the near future. The Bush-Obama deal will be evident within one year.

Eric W
Eric W - Wednesday November 05, 2008 09:37AM EST

Whit - LOL! Yes, the media had a clothed orgy, a televised orgasmatronic love-in of their socialist messiah. It will make watching them report the inner city riots and the Middle East war that much sadder.

bb
bb - Wednesday November 05, 2008 09:38AM EST

Why complicate things so much? Its a no brainer. Incentives to corporations that are based and produce in US. Tax the s--- out of corporations using other countries as home base and using foreign slave and communistic labor to produce products shipped to US. Who can compete with that? Corporate America needs to take long hard look at a Business Ethics Book.

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