Basic components of the United States infrastructure, such as the Interstate Highway System, are in dire need of repair. This is long overdue and comes at a time when the United States needs to put people back to work. A long term, long overdue investment by the government into the United States infrastructure, from transportation systems, to electrical grids, to sewers, is coming. Short term traders can profit from this as the politics of “who gets the money” works its way through congress and the various responsible agencies.

Transportation, the Interstate Highway System, and the United States Infrastructure

Much of United States infrastructure has needed to be fixed for a long time. However, funding has often been missing as other issues of the day took precedence. Now, however, the economy is a mess and the country has lost jobs. Political pressure is going to make Washington put money into projects that buy American products and employ American workers.

That having been said, politics will continue to operate as usual. Where the money gets spent for infrastructure repairs and who will be smart enough or well positioned enough to get the work will be the issue for smart short term traders. The fact that the strengthened Democratic congress is already questioning parts of Obama’s economic stimulus plan is consistent with congressmen looking out for their constituents.

The likely winners in infrastructure improvements will be, as usual, the states with the most powerful senators or representatives and companies with the most political influence. Companies who have supported the democrats over the years when they were out of power is important information to those involved in short term trading. Timing will be important as well to determine which sectors will likely benefit as the United States mends its infrastructure and creates jobs.

Short Term Trading in Companies Involved in Infrastructure Improvements

A sampling of infrastructure includes roads, bridges, hydroelectric dams and irrigation systems, railroad mass transit systems, airports, the entire air traffic control system, concrete, steel, fiber optics, computer systems, satellite systems, electrical grids, water and sewer systems, and more.

Foreign owned companies will probably need to manufacture in the United States to be involved in United States infrastructure improvements. So, look for US companies and foreign companies doing substantial manufacturing in the United States as fertile ground for short term trading.

It will be important for traders to monitor which steel and cement companies are benefitting the most from the infrastructure repair projects. Knowing the players and watching the news will help. Following your trading system will be essential. There is the sense that we are in historically bad economic times and that problems are larger than life. However, group psychology still rules and short term trading systems are geared to take advantage of group psychology.

Roosevelt said at the beginning of the Great Depression that what the nation had to fear was fear itself. The government will understand this philosophy and will attempt to put infrastructure maintenance and replacement projects into place soon to restore a sense of hope. Smart short term traders will be able to make a profit on the ups and downs of various market sectors as the public buys or sells based upon despair one day and unrealistic expectations the next.

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