Regardless of whether people agree with the government stimulus efforts in the United States or across the globe, there are ways that investors can play it. James Reed, portfolio manager at Scout Stock Fund, and Will Nasgovitz, portfolio manager at Heartland Advisors, shared their ideas and stock picks.
“It’s important for investors to realize that the U.S. is not the only country that’s put in place the stimulus package,” Nasgovitz told CNBC.
“The U.S. is not the only country that’s been aggressive on the monetary front: there’s been 773 cases of stimulus initiatives...since the summer of 2007. So collectively, we think that means that GDP growth in 2010 and beyond should pick up.”
As a result, Nasgovitz said he expects oil demand to pick up.
In the meantime, Reed said the key part of the stimulus bill is the tax credit for jobs.
“If that goes through, that’s where you’re going to get your bang for your buck,” he said. “I like to look at short-term and mid-term.”
Wal-Mart Stores as a short-term stimulus play.
Adobe Systems as a mid-term stimulus play.
Emerson as a long-term stimulus play.
Overseas Shipholding Group
Kansas City Southern
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No immediate information was available for Reed or Nasgovitz.