Earlier this week, the New York Times quoted hedge fund manager Hugh Hendry as saying “If there was a way to short Obama, I would.”
Well, we doubt that Hendry needs new trading ideas, but just in case, we’ve compiled what we think are 10 ways to short Barack Obama.
Maybe someone can create an ETF and let the retail investor do it.
Caterpillar represents what The White House sees as a model for US economic activity. Plenty of domestic manufacturing and exporting. If Obama's vision of a rebound in manufacturing and exporting flops, Caterpillar may struggle.
GE is like Caterpillar, but even more plugged into government, thus making it a good proxy for government. It's hooked right into the system on energy, healthcare, and finance. If you think Obama will screw that all up, GE is likely to suffer.
If the dollar keeps rallying, it will almost certainly be a sign that investors remain nervous about the US.
The most straightforward SHORT you can imagine: bet that Obama won't be re-elected in 2012.
This may be even a better proxy. An unpopular Obama is likely to bring down his own party, setting up a good opportunity in the November midterms.
If Obamacare flops, healthcare costs will continue to surge, hurting domestic players with high labour costs. Ford would be the poster boy for this issue, and in fact healthcare inflation has been cited as a major reason that US automakers have such a hard time competing.
Clearly Obama doesn't want California to fail. But he may not have the political clout to bail it out.
If you think Obama will flop in his energy endeavours, going long big oil makes sense.
If Obama fails in curtailing business as usual on Wall Street, then this is the bank to buy.