This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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!

A State of the Union Preview

NEW YORK (TheStreet) -- Today I'm departing from my typical value-investing column because tonight many will flip on their TV only to find that their favorite 8:00 p.m. show has been preempted. It's time for the annual spectacle in Washington, the president's state of the union address. I've seen many of them over the years, and have a pretty good idea about what will go down this year. Here's what my crystal ball is predicting for tonight.

Smiley Joe Biden will be flanked by sour-faced John Boehner. The grin will never leave Biden's face, as if he is telegraphing that still can't believe he's the VP. Boehner, on the other hand, Boehner will never smile, not once. Viewers will be made to wait while the president makes his entrance, stopping to shake hands, hug or exchange pleasantries. Once the president gets going with his speech, a whole bunch of time will be wasted while the entire Congress occasionally erupts into a standing ovation. More often than not tonight, though, just half of the Congress will rise in applause after certain remarks by the president. Same thing every year.

Then there's the content of the speech -- what the president will and won't say. Here are some of the issues he'll address, taken directly from my crystal ball.

On the Affordable Care Act

Will say: The rollout was rough, but the website is working now and the plan will ultimately work. We just have to be patient. Then he'll cite the case of Joe Smith, from Youngstown, Ohio, who was finally able to get affordable coverage after years of dealing with a preexisting condition. Then he'll add a second example, about Mary Jones from Seattle, another ACA success story. One or both will be in the audience, seated near the first lady.

Won't say: Sorry that this entire initiative is a disaster that negatively affected many times the number of people that it has helped. Sorry for telling America that if they liked their doctor they could keep their doctor, period; if the liked their current insurance, they could keep it, period.

On the Economy

Will say: The recovery is gaining steam, and unemployment has fallen to 6.7%, the lowest level in more than five years. Millions of jobs have been created, and better days are just ahead. He will then tout the creation of a new public-private manufacturing hub in North Carolina, then announce the locations of additional hubs. He will also make a case for raising the minimum wage (more on that below).

Won't say: This is one of the weakest economic recoveries on record, and it is fragile at best. The unemployment numbers don't tell the true story, as the labor participation rate is at a 35-year low, and many are simply giving up the pursuit of employment. Businesses are still uneasy about the effects of the ACA and other regulations, and it is affecting their hiring practices. Raising the minimum wage is popular politically, but will increase unemployment rate for entry level workers.

1 of 2

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!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

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