According to Intrade, an online prediction market that correctly called each Senate race the past two elections, Obama and Huckabee are clear favorites.
But more important, the smart money is betting on a Democratic sweep, with the Dems taking not only the White House but also the Senate.
What's the trade as America heads to the polls? We find you the green in a blue state romp.
Regardless of who wins, investors believe defense stocks will be sold-off as the new president begins to pull America out of Iraq. But I don’t think spending on defense will slow down under a new administration says Guy Adami. I’d buy Lockheed . And in healthcare look at either Merck (MRK) or Pfizer (PFE).
Great call on Lockheed says Tim Seymour. Also investors might want to look at Boeing . In addition, Fannie Mae (FNM) and Freddie Mac (FRE) could be in play around election time.
I agree with Adami if Hillary Clinton wins the election. But if any other Democrat takes the lead than I think defense sector stocks are a sell.
Also I only think healthcare is a buy if Obama wins.
If you get Edwards look for the automakers to catch some wind. And as a trade I’d short the iShares Emerging Market Index .
It’s way too early to predict who is going to win let alone how to trade it!
* * * * * * * * * * * * * * * * * * * * * * * * *
Following are the latest results from Intrade:
Democratic Iowa Caucus '08: Chance of Winning
Republican Iowa Caucus '08: Chance of Winning
'08 Presidential Election Party Winner
Leading Presidential Candidates: Chances of Winning in '08
Got something to say? Send us an e-mail at firstname.lastname@example.org and your comment might be posted on the Rapid Recap! Prefer to keep it between us? You can still send questions and comments to email@example.com.
Trader disclosure: On Jan 2, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (INTC), (DIS); Jon Najarian Owns (AGU), (CSIQ), (AMZN), (BG), (DE), (DPTR), (GFI), (GS), (GT), (MON), (MOS), (MRO), (POT), (TSO), (UBS), (VLO), (CME), (GM),(UA); Jon Najarian Is Short (KLAC); Seymour Owns (CSCO), (INTC), (BX); Seygem Asset Management Owns (EWT), (TSM), (X), (PKX)