Corporate earnings are> lousy, the market is having its worst start to a new year in history and Americans are losing their homes at an alarming rate. The 44th president of the United States needs to restore confidence right quick.
But is there anything investors can do to give the nation their own nudge in the right direction and maybe help their portfolios too? The mantra heard so often in recent weeks is how consumers need to get spending again. You could argue the same holds true for many investors.
This being 2009, war bonds aren t really an option for putting your money behind the country. So instead, we pulled together a list of investments that let you show a vote of confidence in the American future.
Fortunately, confidence overall is already improving and should only get better after the inauguration, says Keith McCullough, chief executive and chief investment officer at Research Edge, a real-time investment research firm in New Haven, Conn.
"The market is still 10% off its bottom and stocks are the leading indicator for confidence, or the lack thereof," McCullough says. "I think everything sets up for Obama to start making people feel better on Tuesday. Or at least better than they've felt in a long time."
This Patriotic Portfolio doesn't necessarily represent the best trades, cheapest stocks or most promising buy-and-hold positions. Rather, it serves as something of a proxy for some of the U.S. s biggest ideals (and worst impulses). As these holdings go, so goes the nation.
American Express (AXP)
Too much debt got America into this predicament; taking on even more debt is the only way out. (That's the thinking behind federal stimulus spending, anyway.) Consumers can chip in by borrowing money at rates they can't afford to buy things they don't need -- and can't afford. That's where AmEx comes in, though it sure would help if they'd stop sneakily cutting folks' credit limits.
U.S. Steel (X)
Founded by Andrew Carnegie, based in Pittsburgh, maker of actual, tangible goods. What could be more quaintly American? True, the stock has melted along with the rest of the sector, but let's have a little faith in the new administration, as well as the market. Between Obama's proposed infrastructure program and the fact that the stock is dirt cheap (it goes for just two times trailing earnings), U.S. Steel looks like a steal.
Ford (F)
From the Model T that weighed half a ton to the F-150 that can carry a ton, Ford's put generation after generation of Americans behind the wheels of noisy, inefficient vehicles. As the only member of the Big Three not feeding at the government trough, Ford looks like Detroit's last best hope for the future of the U.S. auto industry. American's aren't buying Ford cars; patriots could at least buy the stock.
Starbucks (SBUX)
Nothing says American cultural hegemony like having a Starbucks on every corner of Cleveland and Krakow. The coffee company's been struggling in the U.S, where it's both saturated the market and found its prices difficult to justify. One day Americans will again see the value of a six-dollar venti cinnamon dolce frappuccino. That's when we'll know the economy is back on track.
Walt Disney (DIS)
Speaking of American cultural hegemony, Disney's movies, TV shows, channels, networks and theme parks offer one-stop shopping for what America does best: Export popular culture. Cheap shares and a decent balance sheet help make this American icon and component of the Dow Jones Industrial Average anything but a Mickey Mouse holding.
Best Buy (BBY)
As its rivals struggle, stumble or go out of business, Best Buy is grabbing market share with competitive brick-and-mortar prices and economies of scale (not to mention Americans' enduring love affair with shiny, new gadgets). Like Starbucks, it's an indicator of consumer confidence: As long as Americans insist on buying TVs the size of "Guernica," everything's going to be just fine.
PowerShares WilderHill Clean Energy ETF (PBW)
Alternative energy isn't really an American thing. The Obama administration hopes to change all that. As long as oil stays relatively inexpensive that s going to be a difficult proposition. But cheap oil won't last. Once the U.S. and global economies recover, so too will energy costs, making the clean energy space ever more attractive. (It would also be nice to try to keep the earth inhabitable for later generations.) Investing in clean energy through this exchange-traded fund is a vote of confidence in America, and the planet.
PowerShares Dynamic Biotech & Genome ETF (PBE)
Once upon a time American industry poured resources back into basic research and development to discover or invent glorious new products and processes. Today most corporate R&D yields nothing more miraculous than a creamier soy-based buttery spread. Then there's the biotech sector, where folks in white lab coats keep America's history of innovation alive. This ETF is a back-to-the-future bet on a proud national legacy of conjuring something from nothing.
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