4 Stocks for Congressional Gridlockhttp://www.fool.com/investing/general/2013/11/03/4-stocks-for-congressional-gridlock.aspx Alexander MacLennan
November 3, 2013
It's tough to watch the news today without hearing about the dysfunction in Congress. With the recent government shutdown, little action on passing major legislation, and a near technical default, people of all political affiliations are noticing the problems in Washington. But this article isn't about Democrats, Republicans, or any other political party; it's about investing and four ways to profit from the gridlock.
But there is a way to capitalize on this infrastructure problem. Even as roads remain substandard, people still need to drive and will continue to do so.
And all this driving on damaged roads takes a toll on car tires. That's good news for Goodyear Tire & Rubber (NASDAQ: GT), which stands to see more sales if more tires are damaged on roads, as consumers will still need to replace them.
The upside for Goodyear even goes beyond additional sales from road damage. A rebound in the auto industry means more auto sales as consumers seek to modernize what is the oldest fleet of cars ever on the road. Since new cars tend to come with new tires, accelerating car sales form another positive for Goodyear.
It's tough to see how there would be a time where a gun-control bill would have a better chance of passing than right after the Newtown tragedy. Whether you were in favor of the bill itself, its failure to pass and the large uphill battle any such legislation would face in the future is good for firearms manufacturers such as Smith & Wesson (NASDAQ: SWHC).
Having built a business around the sales of firearms, Smith & Wesson could be hurt if Congress were to completely overhaul federal gun laws by instituting additional firearms restrictions. In this way, Congressional inaction prevents the passage of financially damaging legislation.