by Marc Lichtenfeld
Senior Analyst & Healthcare Specialist, Smart Profits Report
Editor Xcelerated Profits Report

“It’s all the same…
Only the names will change”
– Bon Jovi

Ah, “politics as usual” – I knew it wouldn’t take too long before this age-old scenario reared its ugly head once again.

Having swept into office on a tsunami-like wave of goodwill, President Obama saw it evaporate this week after the House of Representatives passed the $819 billion spending bill along traditional party lines.

Partisan politics as usual.

With a mandate from a highly expectant American public to back them, it was hoped that Obama and his Democrat-controlled Congress would enact some meaningful changes on Capitol Hill.

Alas, the bill appears filled with more pork than the dumplings at the House of Nanking.

The fact that House Republicans did not support the bill and that their counterparts in the Senate will likely do the same is bad for investors.

Wait a minute! You just said the bill is pork laden. How could opposing it be bad for investors? I’ll tell you why…

Washington Loves Whine With Its Cheese

Thanks to the large majority that the Democrats hold in Congress, the bill or one very similar is going to pass. No issues there.

But by having a divided Congress, Washington is basically telling the American people that, despite Obama’s warm, uplifting rhetoric, nothing has actually changed. The two political parties are still sniping away at each other with gusto, blaming each other for the nation’s problems – past, present and future.

But in order for the economy and the markets to stabilize and get healthy again, we need some darn consensus. You know, the idea that everyone is actually on the same page and are working to fix things.

I know… what a terribly old-fashioned, optimistic notion.

But make no mistake… this is critical to the fragile public psyche.

Confidence Breeds Cash

The market – and to some degree, the economy – is the product of emotion and sentiment. Yes, there are certainly structural issues and flaws that cannot be ignored, but the fact is that if people feel hopeful that change is coming and that progress is being made, they will start to open their wallets. And what will start with a trickle will eventually snowball and will get the economy moving again.

That obviously doesn’t hide the fact that we also need large fixes to the economy and financial system. But consumer and investor sentiment is an integral element.

So that said, I’ll hop down off the soapbox now and get to the meat of the situation – discussing some stocks that could be beneficiaries of the government’s largesse over the next few years…

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Forget Oil… This Is The World’s Most Critical Commodity

For all the talk about oil, there’s another critical commodity that the world simply can’t live without. In fact, it may be even more important than oil.

Water.

Under the government’s spending plan, water projects will receive $8.4 billion. I believe this is one industry that will receive a major boost from the increased infrastructure spending, with governments around the world expected to shell out hundreds of billions of dollars over the coming years.

This is why recently added one of the financially stable, fast-growing companies in the industry to the Xcelerated Profits Report portfolio – one that enables water desalination plants to save significant amounts of money by capturing wasted energy and recycling it back into the system. Desalination will be a critical component if the world’s water needs are going to be met.

I can’t reveal the name of the stock to you here, but what you can do is check out how you can become a member yourself and start profiting from this and our other recommendations right away. We’ve got all the details here.

Here are some more potential winners…

These Two Sectors Are Set For Huge Cash Injections… And Here Are Two Firms That Could Benefit

Energy: Energy projects will receive nearly $40 billion worth of federal funds. A good chunk of this will go towards renewable energy – a big part of Obama’s energy plan.

FPL Group (NYSE: FPL) is the largest solar and wind energy provider in the U.S., and is the electric company for most of Florida.

It’s no secret that the real estate collapse has crippled south Florida’s economy. And Miami is the metropolitan area that will receive the most federal dollars for infrastructure projects. Any rebound in south Florida economic activity should bode well for FPL. The stock also currently boasts a 3.5% dividend yield.

Healthcare Information Technology: This sector will receive $17 billion. Even without the government cheese, I like this area, as it’s a necessary component for streamlining the healthcare system.

Consider a stock like Quality Systems (Nasdaq: QSII). Its earnings are projected to grow by 18% per year over the next five years, yet the stock is trading at 19 times forward earnings. QSII has plenty of cash, no debt, is cash flow positive and sports a 3% yield.

As we’ve said numerous times before here, there are quality companies that will not only survive, but thrive during the economic malaise. And although it may seem far off now, we will eventually return to an environment where many more companies have the opportunity to grow and reward their shareholders and employees.

In the meantime, our elected officials seem to be telling us (with half-hearted apologies to John Bon Jovi) that, “Bad medicine is what you need.”

Note to Washington: No, it isn’t.

Have a great weekend.

Marc Lichtenfeld