This year is starting out as a year of hope and change for many Americans.
Following the 2008 meltdown, investors are placing high expectations in the new president. Based on what we’ve come to know about President Obama so far, certain companies and sectors are expected to benefit from new policies while others are likely to be hurt.
Likely benefactors of Obama’s “Get America Back to Work” campaign are in construction-related fields. The U.S. infrastructure is deteriorating. There are roads that need to be rebuilt, bridges that need to be fixed, and structures that need to be reinforced.
One of the first companies that may come to mind is Caterpillar (CAT). No big construction site is complete without heavy duty equipment from CAT. Savvy investors know that investing in individual companies comes with a fair shot of often unpredictable risk.
If you are looking for a broad based basket of stocks that contains CAT and performs like CAT, consider State Street’s correlation tracker: <https://www.spdrs.com/tools/correlationTracker.seam> .