This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Market Preview: Buckle Up

NEW YORK (TheStreet) -- So much for the relief rally.

Turns out there was a worse result than no result in the presidential election on Tuesday: More of the same! Another four years for Barack Obama, along with a Republican-controlled House and the Senate remaining in the hands of the Democrats brought out the sellers on Wednesday, and it suddenly looks like the rest of 2012 may be a wild ride.

"We believe that this kicks off a period of uncertainty surrounding the fiscal cliff and U.S. deficits," wrote Jonathan Golub, chief U.S. equity strategist at UBS, on Wednesday. "We believe that this debate will be messy and drawn out (likely pushed out beyond the 12/31 deadline), resulting in increased investor angst."

Golub sees a potential positive lurking in this scenario if legislators decide to think big and do more than just pursue a stop-gap solution.

"While initially the debate will focus on 'cliff avoidance,' we believe it will highlight the need for a 'grand bargain' to address ongoing trillion dollar deficits," he added. "Should such an agreement be reached, we could see stocks meaningfully higher on both earnings and valuations upside."

In the near term, Golub listed a number of industries he expects to benefit from Obama's victory, including cell towers, derivatives exchanges, infrastructure, building products, discount retailers, drug retailers, hospitals, and clean/alternative energy.

Specific stocks he mentioned were American Tower (DIS), Crown Castle International (CCI), CME Group (CME), United Rentals (URI), AECOM Technology (ACM), and Mohawk Industries (MHK).

Golub's other advice was for investors to keep a focus on the United States.

"Stay domestically oriented," he said. "While we face a challenging cliff debate, we continue to see greater strength in the U.S. than in most parts of the world. Further, domesically oriented businesses tend to be less cyclical and have been delivering more attractive results."

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,979.13 +59.54 0.35%
S&P 500 1,986.51 +4.91 0.25%
NASDAQ 4,526.4820 -1.0320 -0.02%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs