Working in tandem with Obama, Democratic leaders in Congress have called for around $150 billion in new economic stimulus money. They advocate using the funds to 1) create construction jobs, 2) give more aid to the states and 3) beef up help for the poor and the unemployed.
Although it’s unclear whether lawmakers will act before or after the new administration takes office, Zach Karabell, president of RiverTwice Research, tells Fast Money he anticipates certain areas of the economy could soon be showered with money.
They follow: #1 Infrastructure , #2 Regional Banks, #3 Low- to Middle-End Retail #4 Disposable Spending
Karabell’s thesis: Obama has pledged $500 billion for an infrastructure build out. (Think roads and bridges.) That creates construction and engineering jobs which in turn creates regional banking activity. That in turn creates retail activity. And so on, and so on….
But a critical component of this plan is that “it does not require a recovery of Wall Street finance. Karabell thinks that's key.
What’s the play?
“You can either invest the headlines or you can look at companies that are going to have systemic long term recovery, says Karabell. Look at the regional banks, the retailers, and even the restaurants in the strip malls.
Want more? On Wednesday's Closing Bell Karabell recommended some specific stock picks related to infrastructure.
Karabell’s picks: , Jacobs Engineering , Fluor Corp. , ITT Corp.
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Trader disclosure: On Dec. 4th, 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 (MSFT), (WMT), (UUP), (MCD); Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Najarian Owns (FCX); Najarian Owns (NUE) And Is Short (NUE) Calls; Najarian Owns (CIT) Calls; Najarian Owns (SBUX) Call; Seymour Owns (AAPL), (BAC), (BX), (F), (MER); Seygem Asset Management Owns (RIO)
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