Nine Stock Funds for an Uncertain '09

President-elect Obama also campaigned on a promise to allocate enormous expenditures on an environmental initiative, including alternative energy. With holdings in alt-energy stocks such as JA Solar Holdings (JASO), Suntech Power Holdings (STP) and Vestas Wind Systems of Germany, the Fidelity Select Environmental Fund (FSLEX) stands to benefit.

FSLEX's largest portfolio holding, Waste Management (WMI), describes itself as being in the "waste-to-energy" business.

Those with longer-term investment perspectives might speculate that the Obama stimulus will reignite industry and thereby stimulate demand for fuels, chemicals, metals and other resources.

A beneficiary of that scenario would likely include the ING Global Natural Resources Fund (LEXMX).

The fund's portfolio includes investments in coal, forest products, mining and iron and steel. Its largest holdings are in oil and gas, with large positions in Exxon Mobil, Schlumberger (SLB), Marathon Oil (MRO) and Halliburton (HAL).

LEXMX's natural resource holdings would also insulate holders from the erosive impact of inflation, a possible side-effect of overly ambitious fiscal and monetary stimulation

The Fed's latest policy statement of tolerance of near-zero short-term rates resulted in almost instant weakening of the U.S. dollar. The ambitious Obama stimulus proposal and environmental and social programs could result in additional loss of confidence in the greenback by foreigners.

A diversified portfolio of foreign investments would hedge against erosion of the U.S. currency, and a fund to consider for that purpose is the First Eagle Overseas Fund (SGOVX).

Its portfolio management team, headed by legendary international investor Jean-Marie Eveillard, has its holdings distributed as follows: Europe at 31.6%; Japan, 30.2%; Asia (excluding Japan), 16.4%; Latin America, 2.4%; Canada, 1.5%; and South Africa, 1.3%. Its largest holding, gold, is to many the ultimate inflation hedge.

SOME TRADITIONAL DEFENSIVE PLAYS FOR RECESSIONARY PERIODS FUND NAME First American Eqty Inc A James Advantage Market Neutral A Fidelity Select Consumer Staples Port FBR Gas Utility Index Fd TICKER FFEIX JAMNX FDFAX GASFX TOTAL NET ASSETS ($MIL.) 100.9 48.8 706.9 198.5 TOTAL EXPENSE RATIO (%) 1.16 1.95 0.91 0.79 MAX. INITIAL SALES CHARGE (%) 5.50 0.00 0.00 0.00 MIN. INITIAL PURCHASE ($) 1,000 2,000 2,500 2,000 TheStreet.com RATINGS REWARDS GRADE B A+ A+ A TheStreet.com RATINGS RISK GRADE C+ B+ C+ C+ TheStreet.com RATINGS OVERALL GRADE B A+ A- B+ TheStreet.com RATINGS RECOMMENDATION BUY BUY BUY BUY 3-MO. TOTAL RET'N (%) -24.14 2.61 -18.58 -24.79 12-MO. TOTAL RET'N (%) -34.01 -2.67 -25.06 -27.57 3-YR. ANN'L RET'N (%) -5.57 1.26 3.62 0.26 YIELD (%) 6.5 0.9 0.0 2.9 POSSIBLE 2009 INVESTMENT PLAY Dividends provide income during downturns No net exposure to the stock market Consumers still need some products during recessions Utility industry tends to be recession-resistant Source: TheStreet.com Ratings (Data as of 11/30/2008) For more information, check out an explanation of our ratings

STOCK MUTUAL FUNDS FOR THE OBAMA-BERNANKE DUET FUND NAME Allianz RCM Wellness Fd A Virtus Glb Infrastructure Fund A Fidelity Select Environmental ING Global Natural Resources Fund A First Eagle Overseas Fund A TICKER RAGHX PGUAX FSLEX LEXMX SGOVX TOTAL NET ASSETS ($MIL.) 15.6 63.4 49.6 83.8 3,521.2 TOTAL EXPENSE RATIO (%) 1.52 1.25 1.08 1.44 1.14 MAX. INITIAL SALES CHARGE (%) 5.50 5.75 0.00 5.75 5.00 MIN. INITIAL PURCHASE ($) 5,000 500 2,500 1,000 2,500 TheStreet.com RATINGS REWARDS GRADE B- A B A- A TheStreet.com RATINGS RISK GRADE B- C+ C C- C+ TheStreet.com RATINGS OVERALL GRADE B B+ B- B- B+ TheStreet.com RATINGS RECOMMENDATION BUY BUY BUY BUY BUY 3-MO. TOTAL RET'N (%) -26.95 -24.09 -29.18 -37.66 -19.61 12-MO. TOTAL RET'N (%) -31.78 -33.56 -32.97 -37.97 -26.80 3-YR. ANN'L RET'N (%) -7.58 1.35 -6.03 3.01 0.56 YIELD (%) 0.0 2.7 0.5 1.6 4.8 POSSIBLE 2009 INVESTMENT PLAY Recession-resistant sector, plus new gov't healthcare spending Global economic stimulus spending on infrastructure New administration spending on the environment Global economic recovery will result in demand for resources Fed hyper-stimulation erodes U.S. dollar Source: TheStreet.com Ratings (Data as of 11/30/2008) For more information, check out an explanation of our ratings

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