Obama stock: Build gains from infrastructure spending, Industrial Select Sector SPDR (XLI)

Filed under: Newsletters, Mutual funds, Presidential elections, Stocks to Buy

This post is part of a series in which TheStockAdvisors.com asked financial experts to name their top stock pick if McCain or if Obama wins the election.

"If Obama wins, we would seek to profit from his plans to increase infrastructure spending; we would suggest investing in the Industrial Select Sector SPDR (NYSE: XLI)," says fund expert Doug Fabian in his Successful Investing.<!---->

"One sector that I think will perform well if Obama wins the election is industrial infrastructure. The Democratic candidate repeatedly has said that the nation needs to rebuild its aging infrastructure, including bridges, the power grid and our water delivery and reclamation system.

"I think there will be a lot of federal money doled out to the states for this purpose if Obama is president -- especially if the Democrats gain seats in Congress.

"One way to play this likely increase in infrastructure spending is via the Industrial Select Sector SPDR, an exchange traded fund focused solely on this area.

"This ETF includes companies from the following industries: building products, construction, engineering, electrical equipment and conglomerates.

"This fund normally will invest at least 95% of its total assets in common stocks that comprise the Industrial Select Sector Index."

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.

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