Thursday, January 15, 2009

Stimulus Plan Details

With the much anticipated stimulus plan coming soon, we got a look at the details today. It's a pretty broad based bill, with quite a bit of money allocated to tax cuts and social programs.

I was pleased to see $32 billion to build a smart electricity grid. There are also tax credits and incentives to promote research with will be important.

I don't think this will change much for investors, as there isn't a lot of detail on private sector items. A lot will depend on states and local municipalities and what projects they put forward. It has the feel of a "use it or lose it" plan for the states, and I'm sure they'll use it. But it doesn't necessarily mean stock XYZ will benefit.

I think the market as a whole will benefit in the short term. Next week we'll probably see some better results with spirits up due to the inauguration.

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