“Energy Efficiency: $600 million is available for PHAs to create more energy efficient public housing units. Applications are due for this category on July 21, 2009.” Thus reads a line in www.recovery.gov. We have talked before about “trading the recovery.” The recovery website continues to post news about where the economic stimulus money is going. Funding to improve home insulation is not the only place where money is going. Take a look at the recovery web site for idea on where to trade. It is still not too late to anticipate were the stimulus money will go.

Under the authority of The American Recovery and Reinvestment Act of 2009 HUD has already allocated $3 billion to housing authorities throughout the USA for energy efficiency economic recovery projects that are already underway. Now there is another billion dollars of energy efficiency, economic recovery money that will be allocated by bid.

As recovery.gov notes the last application date is July 21. It might be interesting, and profitable, to see who submits bids and for what kind of energy efficiency projects.

An interesting link from recovery.gov is FedBizOps.gov which lists jobs up for bids. Much of this is very individual but some of the jobs are substantial and likely to involve companies listed on the NYSE or NASDAQ. The site lists 2,000 biddable projects to paid for by money from the economic stimulus, economic recovery funds. Much of this goes beyond energy efficiency into repair and maintenance work as well as larger, long term, economic recovery projects.

In talking about trading the stimulus we have talked about green projects. Many of these will be up for bids later this year and the bidding may well be tradable situations with a nice profit to be made by scalping as the winner is announced.

As we mentioned before one need not even watch the various bids and grants on the various government sites to realize that certain types of products and materials will be used in all of these energy efficiency and economic recovery projects. These include insulation, plastic sheeting, staples, nails, paint, caulk, etc. Everyone who makes general construction materials, especially home insulating materials is likely to benefit and will be possible targets for a good trading strategy.

Trading stimulus will work for another year or so, both as stocks go up, and as they go down when the projects are over. There will likely be “trading the stimulus,” economic recovery money to be made going both directions.

Another trading the recovery thought is what the shape of the US economy will be as the recovery progresses. This writer’s parents were young adults during the recession and remained frugal their whole lives. Wal-Mart is doing well as more shoppers are reducing expectations and budgets. Will shoppers used to Wal-Mart and K-Mart return to more upscale stores and brands? If so, who will be the winners as jobs and paychecks come back with the economic recovery next year? Will energy efficiency become a cultural concern, at last, with smaller and more fuel efficient cars. What will be the shape of a new General Motors not to mention its supplies post economic recovery? It is never too soon to start looking at where all that economic recovery money and its aftermath are going to lead us.

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