Political Stocks

As the presidential transition starts, political fights also infect some stocks. For example, GM asked for Federal helps and the President-elect Obama and the Democrat controlled congress urge President Bush to help the auto industry. Obviously, the call helps Obama's credibility, given good relationship between Union and the Democrats.

However, this request doesn't echo well on the Republican side. The White House commented that there is no link between auto industry rescue and Obama-Bush meeting. Paulson also declared that TARP is not for the auto industry. GM, in particular, is stuck. From now to next January, we should not be surprised to see GM's trouble deepens. Such political chips may be a good bet after January if it survives the storm. Given the congress is also in the Democrat's control, it is not too daunting to reverse the course.

Similar stocks are in energy and health care fields, where Obama has apparent disagreed agreement with the Republican.