Investing Under Barack Obama

America has started a new era under Barack Obama, the 44th president of the United States. He has helped spark a wave of energy and hope that has rippled all across the nation, even in these challenging times.

Hope is exactly what we need on Wall Street right now after a rather dismal 2008. But an agenda is very different from real action. As with all politicians, Barack Obama will have to prioritize his campaign promises, and some of his plans will fall by the wayside. The limitations of the federal budget, political opposition and economic forces beyond his control will make it impossible for him to do everything.

Like most Americans, I really would like to see President Obama succeed–but that doesn't keep me from being realistic about the future. For instance, I particularly admire Obama's recent pledge that no unreviewed earmarks would be allowed to be added to his proposed stimulus program. This is a terrific plan, but the reality is that the folks in Congress may not be cooperative. These are the challenges that our new leader faces.

Obama is not the first president who has faced unrealistic expectations. Every new president brings hope for the future and typically gets a 100-day "honeymoon" in which the market edges upward. But how your portfolio performs after that relies on changes you must make now. We can't afford to wait and see if there is any substance to Obama's style–by making the right moves, you can ensure that your portfolio posts big profits for the entire year and not just during Obama's first 100 days.

Here are three  main economic developments I expect to see under Obama's aadministration, and how you should prepare for them: