Global Trends’ Lydon: ETF Winners Under Obama

Three investment sectors are expected to flourish during President Barack Obama’s second term, and a good way to invest in those sectors is through exchange-traded funds (ETFs), according to Tom Lydon, president of Global Trends Investments. 

Investors are understandably nervous about the dysfunctional relationship between the Republican-led House of Representatives and President Barack Obama and the January deadline to come to a decision on the economy or risk the nation falling off the financial cliff. 

Lydon said one sector certain to flourish is industries linked to Obamacare, such as healthcare, pharmaceuticals and insurance companies, according to CNBC.  Lydon recommended investing in the iShares Dow Jones US Healthcare ETF (IYH) as a way to get a foot in that sector. 

"I think the alternative energy thing, that's something we're going to see very strongly here in California," he told CNBC. 

Estimates are that Prop 39 could add $1 billion to the industry, in addition to 40,000 new jobs created. 

His pick in the alternative-energy field is the Market Vectors Glb Alternative Energy ETF (GEX). 

Gold ETFs are also expected to do well during the second Obama administration, according to Lydon and other experts.  Lydon recommended the SPDR Gold Shares ETF (GLD), which dropped 5 percent in the weeks leading up to the election, although there was an uptick on Election Day, according to the website minyanville.com.