Making Money on an Obama Victory: Short Nuclear, Buy Evil Robots

Hey Greedheads! Obama is going to win… even the political futures market is listing the probability of a Democratic presidential victory at 91.2 %.

So how are you going make some red hot alpha out of democracy? Well here’s a list of sweltering stocks that are going to rocket once the black messiah is elected (care of hedge fund analyst Gennady Favel):

1) Buy clean energy stocks and short nuclear stocks:

“Although Obama has hypothetically supported the increase in nuclear power, he will likely forgo this option for less politically explosive energy sources.”

2) Short stocks in McDonalds, buy stocks in family restaurants:

“Another one of Obama’s goals is to increase the minimum wage to $9.50. If this idea gains traction it could indicate a decrease in profits for America’s fast food restaurants that rely heavily on their minimum wage workforce. On the other hand, family style franchise chains that already pay a higher salary and provide benefits will be less affected.”

3) Buy stocks in mysterious military companies making evil death robots:

“Counter to popular belief, Obama does not plan to drastically change defense spending. In fact, he has purposed to increase the size of the military by almost 100,000. Also, his desire to modernize America’s armed forces could be good news for companies such as iRobot Corp (IRBT) that supply robots to the U.S military.”

I think we can do better than that though – let’s get creative here. If Obama wins all the latent racists and lunatics are probably going to have one last riot/festival of hate. So buy stocks in pitchforks, shotguns, and confederate flag manufacturers… and short life insurance companies…?

Unhinged CNBC money man Jim Cramer has some of his own ideas – buy stocks in John Deere (agricultural machinery manufacturer), because Obama’s backing of ethanol and farming in general is going to give the whole industry a boost. But can you really trust THIS MAN:

Posted by Jonty Rhodes in Hot Money | November 4, 2008 11:34AM |