Welcome to the Wealth Daily Weekend Edition — our insights from the week in investing and links to our most-read Wealth Daily and sister publication articles.
Grab your bullhorn and climb to the top of the barricade — the 2010 mid-term elections are shaping up to be a doozy.
With the guillotines at the ready, a large slice of the voters are mad as hell, and they’re not going to take it anymore.
All of which sends my libertarian heart aflutter, as the establishment shakes in its muddy boots.
And while there is no monolithic figure like Louis XVI to topple this time, it’s clear now that come Nov. 2nd, heads will roll.
Just ask Mike Castle or Bob Bennett. They’ll tell you it’s “a sign of the times.”
But that is what happens when you shake the bourgeois from their complacent slumber. Suddenly, the Third Estate decides to storm the Bastille.
It’s as if they have re-discovered the document that famously begins: “When in the course of human events…”
Or have taken the time to re-read this passage from over 20 years ago. In his farewell address, then-President Reagan wrote:
Ours was the first revolution in the history of mankind that truly reversed the course of government, and with three little words: “We the people.” We the people tell the government what to do, it doesn’t tell us. “We the people” are the driver, the government is the car. And we decide where it should go, and by what route, and how fast. Almost all the world’s constitutions are documents in which governments tell the people what their privileges are. Our Constitution is a document in which “We the people” tell the government what it is allowed to do. “We the people” are free.
And in the worst economic crisis of their lifetime, who can blame them?
After all, it’s been quite a bumpy ride from euphoria to sadness over the last four years…
Of course, how all of this anger plays out in the markets is all part of the greater guessing game…
But if history is any guide, the market may be in store for a bullish upswing.
According to data compiled by investment firm Birinyi Associates, in midterm elections dating to 1962, the S&P 500 has risen an average of 2.35 percent two months prior to the election, and added gains of 7.46 percent in the three months that followed.
That’s roughly a 10% gain overall, which would make for a target of 1199 on the S&P by February 2011 based on the September 2nd close.
That’s nearly all the way back to April highs — and likely within a whisper of the 200-day moving average.
As for places to play this prospective trend, my pal Ian Cooper made the case for how to trade the November 2010 elections in a story last Friday.
If the party in power loses the Congress, Ian says, oil and nuclear power companies should benefit.
Additionally, he likes health care companies including Unitedhealth Group (NYSE: UNH), Humana Inc. (NYSE:HUM), and Pfizer (PFE), with a turnover in leadership.
As for me, I’ve decided to go long pitchforks and torches headed into this one… It beats apples and cardboard boxes to sell them in.
As for some other places to invest your hard-earned labor, here are a few of the best investment ideas from the pages of this week’s top-read Wealth Daily and Energy & Capital articles.
Have a great weekend.
Your bargain-hunting analyst,
Steve Christ
Editor, Wealth Daily
Gold, India, Silver, Tech and Mongolia: Here are Today’s Bull Markets
Editor Christian DeHaemer describes for readers the five bull markets where they should put their money.
One of the Top 10 Investment Trends of Our Lifetime: Just Released: The Decade’s Most Profitable Investment
Publisher Brian Hicks tells readers about what he believes will become this decade’s most profitable investment report.
Dividend Stocks For 2010 and Beyond: How to Leave this Ship of Fools Behind
Editor Steve Christ takes a look at dividend stocks for 2010 and explains why smart investors are beginning to build their portfolios around them.
The Outlook for Nuclear Stocks: 3 Ways to Play the Atom-Splitting Renaissance
Analyst Adam Sharp looks at three ways to invest in nuclear power: uranium miners, utilities, and a unique startup.
Transocean and Peak Oil: Why These Oil Giants are Screaming Buys
Editor Ian Cooper responds to peak oil critics, and offers two oil giant stocks that are poised for explosive upside.
673 Years Worth of Energy: You’ll Never Have to Worry About $300 Oil Again
Editor Ian Cooper examines an energy find with more oil than 11 Saudi Arabias.
I Was Wrong, There Is A U.S. Energy Policy: Massive Oil Off the Coast of Guyana Could be Your Next 1,000% Trade
Editor Christian DeHaemer discovers another unexplored oil hot spot.
China’s Stronghold on Rare Earth Metals: What’s Got the Pentagon So Worried?
Editor Ian Cooper explores the global demand and current short supply of much needed rare earth metals.
The Best Way to Profit from Oil Sands Investing: The Next Generation of Oil Sands
Editor Keith Kohl shows readers why the next generation of oil sands production will be more profitable than ever.
The Struggling Wind Energy Market: Profit With These Three Stocks
Editor Jeff Siegel reveals three new ways to profit from the wind energy market.
Gold Bull Market: The Guide to Ground Floor Investing
Metals expert Luke Burgess discusses his latest strike and explains why you’ll never see a bull market like this one again ever in your lifetime.
Palladium Outlook for 2011: Demand Up, Supply Down: Are Russian stockpiles of palladium depleted?
Editor Luke Burgess discusses several reasons the price of palladium appears to be headed much higher, and offers one idea on how to yield the maximum profit from palladium’s bull market.
