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How To Create The 'Obama Portfolio'

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How To Create The 'Obama Portfolio'

Business

How To Create The 'Obama Portfolio'

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ALEX COHEN, host:

Here's another way to invest your money: Choose an Obama portfolio. A number of financial advisers are recommending portfolios based on industries which they believe will fare well in this new administration - things like solar energy and health care. Slate.com has taken this idea to a new level. They're looking at which companies could profit from the 44th president's cultural zeitgeist. Karim Bardeesy writes about how to invest in Obamania for Slate's "The Big Money," and he joins us now. And Karim, you've come up with a list of companies. And on that list of companies to invest in: Apple, Hawaiian Airlines and Target. Care to explain the rationale?

Mr. KARIM BARDEESY (Reporter, The Big Money, Slate.com): Yeah, that's right. There's a lot of people out there recommending stocks that might do better from the Obama administration's policies. And we figured, well, Obama's a pretty prominent public figure in himself, and he wears brands and he uses products that maybe people will want to start to buy. Obama did an interview with Rolling Stone magazine over the summer where he talked about what was on his iPod, and maybe that'll inspire a few more people to buy iPods. And therefore maybe Apple is a good stock to pick up.

Hawaii is a place that Obama's been vacationing, and he says he's going to continue vacationing there. And Obama watchers might want to pick themselves up and get themselves over to Hawaii. And they'll have to take an airline. And maybe Hawaiian Airlines will be the company that will transport those Obama watchers over.

COHEN: And Target?

Mr. BARDEESY: One of the main Target designers has been involved in the prospective White House redecoration. So, the use of the Target designer and potentially some Target products in the White House might be an appealing buy for stock pickers.

COHEN: This one was a bit curious to me - Town Sports International. Who's that company, and why should you invest there?

Mr. BARDEESY: You might know Town Sports International by its local brand names: New York Sports Clubs, Boston Sports Clubs and Washington Sports Clubs. When Obama has been on the road, he likes to work out, he likes to keep fit, and he's been spotted at a number of these sports clubs. Washington Sports Clubs, from what we understand, was one of his regulars in D.C. We're guessing that the White House might have its own facilities now to help Obama and Michelle Obama keep fit.

COHEN: But he still has to travel.

Mr. BARDEESY: Exactly. And after he was elected, one of my friends saw him in his local Philadelphia Sports Clubs. And so if you're looking to get a peek of Obama, what best than to be on the treadmill beside him, and maybe Town Sports International is the kind of stock for you.

MARTIN: You have been comparing your portfolio to the one touted by Jim Kramer of CNBC's "Mad Money." What does Jim Kramer recommend?

Mr. BARDEESY: So, Kramer has been looking at the kinds of companies that will do well, and the companies within industries that are poised to do well, because of the Obama administration's polices. For instance, infrastructure investment's to be a key part of the economic stimulus package. So he's looking at companies like Caterpillar and John Deere, the kinds of companies that provide construction equipment, to be doing well in this economy. He's also saying more generally, in a time of economic downturn, people rush to value and to companies that provide cheap goods, companies like Kraft and Wal-Mart, the kind of consumer-staples companies. He thinks that they'll do well in the Obama administration.

COHEN: So, Karim, you've been watching the markets. How do the companies that you've been recommending compare to the ones that Kramer has been pulling for?

Mr. BARDEESY: Well, full disclosure here. Kramer's portfolio is doing a bit better. Hawaiian Airlines took a bit of a hit in the last couple of days, so our Obama cultural zeitgeist portfolio is down a few points. In early trading today, Kramer's is now worth a bit more than when it started. But we're confident that our index is just as wise and just as useful as Kramer's.

COHEN: Karim Bardeesy writes for Slate.com's The Big Money. Thanks.

Mr. BARDEESY: Thank you very much.

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