10 Ways To Go Short Barack Obama

Obama worried

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.

Short Caterpillar

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.

Short GE

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.

Short Citigroup

Amazingly, Citigroup is becoming The White House's favourite bank (Vikram was at the FinReg signing). Don't like Obama? Short Citigroup.

Go LONG the dollar

If the dollar keeps rallying, it will almost certainly be a sign that investors remain nervous about the US.

Short Obama on InTrade

The most straightforward SHORT you can imagine: bet that Obama won't be re-elected in 2012.

Short the Democrats on InTrade in the midterm elections

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.

Short Ford

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.

Short California

Clearly Obama doesn't want California to fail. But he may not have the political clout to bail it out.

Go long BP and Exxon

If you think Obama will flop in his energy endeavours, going long big oil makes sense.

Go long Goldman Sachs

If Obama fails in curtailing business as usual on Wall Street, then this is the bank to buy.

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