Sean Hyman
Contributing Writer
instructor@mywealth.com
Tired of seeing the government throw money at banks, insurance companies and auto companies? Think it's unfair that they get billions of dollars while you don't get anything?
Well, there is one way to help solve that. Allow the next wave of government spending to benefit you. How? Invest in what the government is about to spend money on. What's that? Obama says it will be "infrastructure".
While it can be debated to some extent, which companies will benefit from this, there are some big names that will very likely benefit from this "wave of spending" by the government.
Two stocks to consider for instance, may be U.S. Steel (Stock Ticker Symbol: X) and Caterpillar (CAT). If they are going to build and repair, its sure to involve some steel and some equipment to build with. These two companies have a huge slice of the pie when it comes to that sort of thing.
On the charts, Caterpillar probably looks the best as it appears to have double bottomed on the chart around $30-$31 a share and has eeked out a new "higher high" recently on the chart. This shows that there is likely some "renewed buying" in this stock now that wasn't there just weeks ago.
U.S. Steel hasn't seen quite as much buying yet as CAT but probably will follow CAT's lead in the weeks to come.
Of course after January, I'm sure Obama will discuss his infrastructure spending plan in even more details so that we will know who else could benefit from this government spending program. However, start thinking along these lines and get ready to buy up a basket of these infrastructure stocks so that your portfolio can benefit from the massive spending program that's about to take place in the coming year to years.
Keep your ear atune to what they are saying because there could besome "high tech" ways to beef up the infrastructure. These things are being discussed even now. If these come to fruition, it could even benefit the likes of Cisco Systems (CSCO) and others.
Check out the charts of CAT (upper chart) and X (lower chart).
