The economic stimulus just cleared a big hurdle earlier this evening. The Senate voted 61-36 to shut down debate. This paves the way for a vote on the bill tomorrow.
However, even when the bill passes, we’re still not done. Leaders from the House and Senate will have to get together to work out the differences between their respective bills.
Last month, I wrote about potential investments in an “Obama World” in my free weekly eletter, What’s Working on Wall Street Now. Although many of the details of President Obama’s plans have changed, the basic investing ideas still hold. Here’s some of what I said:
“Another key component in Barack Obama’s economic agenda is new job creation. Obama wants to establish a new credit for businesses that either create jobs or avoid layoffs. This will be a big help for many Americans under the economic stress of stiff mortgage payments and mounting credit card bills. That’s why I see this is a big boon for MasterCard (MA), the credit card company. Four weeks from today, Mastercard will report its fourth-quarter earnings. I’m expecting earnings-per-share to double from a year ago. With the help of Obama’s economic plan, I think MasterCard’s stock could easily jump 40% over the next six months.”
I was right on MasterCard–earnings did double. I was wrong in the market’s reaction. It turns out I was too pessimistic. Since Obama was sworn in, shares of MasterCard are already up 36%.