Top Three ETFs to Play After Obama Victory
Following President Barack Obama's re-election, three investment sectors are worth playing via exchange-traded funds, Tom Lydon of Global Trends Investments said Thursday on CNBC.
On "Fast Money," the company's president said that three ETFs would see large potential gains in the next 12 months.
Lydon noted that Obama and Republicans in Congress would be negotiating a new budget deal, while "a couple of the sacred cows are going to be Obamacare and alternative energy."
The Affordable Care Act would benefit the health care sector, along with pharmaceuticals and insurance companies.
Lydon's ETF pick: IYH.
"I think the alternative energy thing, that's something we're going to see very strongly here in California," he added.
Voters in California this week approved the state's Proposition 39 to benefit alternative energy and energy efficiency.
Lydon estimated that closing a tax loophole, as Prop 39 would do, meant that the industry would see a $500 million boost. Other estimates have put the figure at $1 billion, along with 40,000 new jobs.
"Investors have to understand what's under the hood," he added.
The alternative-energy ETF he picked was GEX.
The third ETF that would benefit under an Obama administration is the gold play GLD.
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