Opinion: Obama's Strategies Will Work

9) 7 C's will help keep the tech sector afloat

Cost reduction initiatives (the purchase of equipment and software can boost productivity); Competitive forces (in order to maintain competitive advantages, companies can't risk falling behind investing in the best equipment and software); Capital depreciation (the depreciation rate for information-processing equipment is much faster than for other types of machinery, which will tend to sustain investment in technology equipment); Controlling inventory (businesses recognize that having the best technology in place helps them to keep inventories from increasing undesirably, a risk in an economic downturn); Capital deepening (businesses recognize that their return on capital is generally good on spending on equipment and software); Cyclical forces (the technology boom that began in the mid-1990s is secular, which means it will rebound when the economy does; Cultural fabric (consumers and businesses simply love new technology -- have you ever walked into an Apple (AAPL Quote) store?).

10) Obama's strategies to end the crisis will prove creative and effective

The first nine themes I discussed set a foundation for Obama to be successful, and theme #1 is the main reason: U.S. hegemony was built on its illustrious history, and Obama is showing early signs that he has the ability to lead the nation back to prosperity. Among other themes is infrastructure, which is likely to benefit from the next U.S. fiscal stimulus plan plus ongoing and new initiatives throughout the world, such as in China, which plans to boost infrastructure spending on a large scale. Investors need be careful as this could become a crowded trade despite the positive outlook for actual spending levels. A persistent theme for years to come will be the water industry, particularly companies that purify, desalinate, disinfect, and distribute water. Demands upon the global water supply are far greater than most think. Estimates from the United Nations show that around 1.2 billion people live in areas where the limits of sustainable water use have already been breached. U.N. Secretary-General Ban Ki-moon, speaking at the World Economic Forum in Davos, Switzerland in January 2008 noted that "a recent report by International Alert identified 46 countries, home to 2.7 billion people, where climate change and water-related crises create a high risk of violent conflict. A further 56 countries, representing another 1.2 billion people, are at high risk of political instability. That's more than half the world." Ki-moon noted that the conflict in Darfur began because of factors related to a drought there. Strains on the world's water supply have increased also because of the production of ethanol and other biofuels, which require a massive amount of water to produce. For example by one estimate the amount of water need to produce biofuels for a tank of an SUV equals the amount of water needed to feed one person on grains for a full year. In light of these and other factors, and given that water is a basic necessity in life, the water industry looks likely to see strong growth for years to come.

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