Presidential Stocks to Power Your Portfolio
This article originally appeared on Traders Reserve.
Since we just finished celebrating Presidents Day, it may be time to consider how to put a little presidential edge into your portfolio with the money you didn’t spend at the sales.
What do I man by a “presidential edge”? Well, there are a few stocks that are likely to see a bounce from their own special presidential connections.
Here are five presidential stocks to power your portfolio higher:
Apple (AAPL)
Apple logo
When the current President of the United States seeks your council on how to create technology jobs, you know you’ve arrived. Well, creating jobs and creating shareholder wealth are what Mr. Jobs and his Apple Inc. (NASDAQ: AAPL) are all about. Jobs’ meeting with President Obama may not have any material effect on Apple shares, but what it does highlight is just how powerful a force the personal technology giant has become.
For investors, Apple’s ability to trounce expectations of all types continues driving shares higher. In fact, anyone who’s owned Apple stock over the past several years is probably ready to vote Steve Jobs for president in 2012.
General Electric (GE)
You know you’re a presidential pet when you’ve been tapped to head a commission called the White House Council on Jobs and Competitiveness. That’s exactly what General Electric (NYSE: GE) CEO Jeffrey Immelt is slated to do.
Mr. Immelt’s presidential connection could turn out to be a profitable one for GE, as President Obama’s focus on clean energy and big infrastructure build outs could funnel millions of dollars in government contracts to GE. That would likely be very good for this behemoth’s shares, and good for investors who take advantage of the tight relationship between Obama and Immelt.
General Motors (GM)
The once mighty General Motors (NYSE: GM) has been derisively dubbed “Obama Motors” due to the role the government played in bailing out the troubled automaker. But after a couple of years restructuring and retooling, General Motors is back trading on the Big Board where it should be.
Last year’s IPO was one of the biggest in history, and though GM shares didn’t accelerate right off the starting line, the stock has managed to get some solid traction. The stock is up nearly 7% since making its return to the NYSE on Nov. 18. Look for this stock to drive portfolios higher with a stronger domestic economy, and with huge growth from emerging markets such as China.
Goldman Sachs (GS)
There is perhaps no company in recent history that can claim a stronger presidential connection than investment banking giant Goldman Sachs (NYSE: GS). Former Goldman bigwigs have populated the Department of the Treasury, the Federal Reserve and the President’s Council on Economic Advisors over the last several administrations. In fact, it was almost an unwritten rule that you needed to first run Goldman Sachs before serving as secretary of the Treasury.
The fact is that the direct line between the Oval Office and Goldman’s offices at 200 West Street in Manhattan gives this financial giant a leg up on the competition. Perhaps that’s part of the reason why Goldman keeps posting record profits, and why its shares have surged over 220% since hitting their 2008 lows.
Macy’s (M)
Macys Logo
You can’t get through a Presidents Day weekend without being bombarded by the horde of retailers offering deep discounts in honor of the occasion. Some of the best deals around on quality merchandise can be had at department store retailer Macy’s (NYSE: M). In addition to its tradition of big Presidents Day sales, the company also has a tradition of delivering big profits.
In November, the company reported a hefty third-quarter profit that easily bested estimates. Macy’s benefited mightily from the return of upscale customers to its high-end Bloomingdale’s stores during the quarter. We’ll know if Macy’s continued its tradition of delivering big profits very soon, as the company is slated to release fourth-quarter earnings today. If that report is good, look for the stock to take off.
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