The easiest trades are the ones done using magical powers of illusion. For example: buying into natural gas or refinery stocks ahead of a giant hurricane; or, into rumors of war, buying into munitions stocks can prove to be profitable. How about buying into biotech stocks ahead of ASCO or tech names prior to CES?
Has anyone ever bought into chicken wing stocks ahead of March Madness and profited from it? I have.
When was the last time you bought PII ahead of the winter ski season? Last year, short sellers made a killing on DECK, because the winter was mild. Due to the hot as shit summer, corn and ag plays have done superb, while chicken and beef stocks languished.
Going into the Presidential elections, there are many opportunities to make money off perception. The perception of a Romney win will make consumer discretionary stocks rise, as well as oil and anything that can benefit from a friendlier EPA. Case and point: NAK.
As you can see from the news clipping above, the EPA doesn’t want NAK to mine in the 3rd largest copper/gold property in the world because it might harm the watershed. Due to the EPA, NAK’s stock price has been crushed to drill-bits, down from $20 to $2. Providing Romney wins the election, it’s entirely possible that NAK will be granted permission from a business friendly EPA, no?
The illusion of a friendly EPA will make the stock soar, well before an actual decision can be made.
If Obama gets reelected, I believe healthcare stocks will rise. I know it sounds counter-intutitive, but BIG government in healthcare equals BIG profits for healthcare companies, like ABC, MCK and ESRX. Last election, stem cell stocks doubled days before Obama’s victory. It’s worth noting, the FDA has been lenient under the Obama administration and has been reflected in massive share gains in biotech stocks.
In short, now is the time to place your bets, BEFORE the media starts hyping poll data. Keep in mind, the ax swings both ways and it swings low–low enough to cut off your cocks if you’re not careful.