Monday, December 8, 2008

Construction Plays Bounce on Stimulus Hopes (CAT)

Last November I posted:
...Besides as they say around here, "Climateer, he's a man who goes where the action is".
(okay, I'm the only one who says it, and I've noticed a huge drop off in party invitations since the self-referential Tourette's [without the coprolalia] kicked in)...
I'm thinking the same can be said about David Gaffen at MarketBeat:
The influence of the federal government in the financial markets has grown throughout 2008, and it has generally focused on the financial-services companies. But infrastructure and heavy construction companies are moving sharply higher Monday, boosted by comments Saturday from President-Elect Barack Obama, who said he has plans for a large-scale package of spending that concentrates on upgrading national infrastructure.

The plan could cost $500 billion or more, if enacted, and would likely focus on investments in highways, bridges and ports and would be the largest such national investments since the 1950s. The chief beneficiaries in the equity market Monday were the likes of Caterpillar, which gained 11.9%, and other construction names....MORE

The infrastructure buildout will be the story next year.