Do As I Say, Not As I Do
President Obama has never been shy in his distaste for people who are wealthy and have made their wealth, particularly on Wall Street.
From blaming those who own "corporate jets" to "hedge fund managers," Obama has never been shy in his verbal jabs at the group.
What's interesting is that despite all of the verbal rhetoric against the group, Wall Street is still throwing money behind him.
Wall Street had accounted for one third of Obama's $34.95 million in funds raised so far, giving $11.8 milion to Obama and the Democratic National Committee during the second quarter.
Obama has learned the art of "not biting the hand that feeds you." Just bark at it a lot.
ACTION ITEMS:
Bullish:
Traders who believe that Obama will continue to get funds from Wall Street might want to consider the following trades:
- Go long the large banks and the insurance companies, all of whom still have major influence on elections. Names like Morgan Stanley (NYSE: MS), Goldman Sachs (NYSE: GS) and J.P. Morgan (NYSE: JPM) all still donate to the Obama campaign, but less than they did in 2008.
- Consider insurance names like MetLife (NYSE: MET), Hartford Financial Services (NYSE: HIG) and Prudential (NYSE: PRU) as well.
Bearish:
Traders who believe that Obama is just another politician who speaks out of both sides of his mouth may consider alternate positions:
- Short Washington. If you are tired of mealy mouthed politicians who do not practice what they preach, vote for people who you believe will. If you do not think there is a viable candidate out there, abstain from voting. If we all did not vote, maybe that would send Washington a signal to really change.
Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.
