August 1, 2011

After studying the details of the debt ceiling deal, here is a list of action items that all investors should consider:

• Short sell nursing home stocks. On our radar screen are Skilled Healthcare Group (SKH), Sun Healthcare Group (SUNH), and Kindred Healthcare (KND).
• Buy banks with strong treasury exposure. On our radar screen are Citi (C) and JP Morgan (JPM).
• Short sell banks with high mortgage exposure. On our radar screen are Wells Fargo (WFC) and Bank of America (BAC).
• Short sell H&R Block (HRB) as there is likely to be some tax implications.