The thinking this time was, even if we have a recession, what sector would be likely to do well?
"With all of the recession talk lately, my theme
today is screening for potential winners that should hold up regardless
of what happens in the economy, be it a soft landing, reacceleration or
Kicking around different sector ideas that looked unusually
strong, one of my partners recalled recent CBO congressional testimony
on infrastructure spending. We pulled up the testimony on Public Spending on Surface Transportation Infrastructure
before the Committee on the Budget U.S. House of Representatives. Given
the recent bridge collapse in Minnesota, and the natural tendencies of
congress members to promote public works programs in their districts,
it’s quite likely we will see robust growth in this sector."
The column identifies 5 firms, with entries, targets, and stop losses. (Also,I’ve been hearing rumors on the NYSE that some of these stocks may be getting discussed on CNBC’s Fast Money tonite).
The column is on the subscription only Real Money, but I’ll see if I can get it moved to the free site eventually . . .
Five Stocks for Playing a Recession Safely
RealMoney.com, 12/3/2007 2:12 PM EST