These pull backs will come when the numbers that come out in the coming months, which will continue to point to more slowdown.

Remember, monetary policy takes time to trickle down, usually 6 to 9 months.

Commodities

Commodities will rally on the back on infrastructure spending and demand for oil and gasoline, which will be ignited by government policy and the increased consumption by consumers as low prices act as an incentive to use more oil.

What should you do?

Selectively invest in infrastructure shares and to buy oil and oil related companies. In this area, we’re looking at General Electric (NYSE: GE), which also just reaffirmed its 2008 profit forecast and 2009 dividend payment plan, as well as refiners like Tesoro (NYSE: TSO).

Financials

Finally, financial stocks will benefit (those that have survived, of course), as the government buys more of their assets, thus cleansing their balance sheets and income statements in future quarters.

What should you do?

In bailing out Citigroup (NYSE: C) shareholders, the U.S. Treasury sent a strong signal that it will not allow major failures and it will not penalize shareholders either.

Banks will also benefit from the spread between their borrowing costs at the Fed window, which will be low for some time to come, and the rate at which they lend the money out (when they start lending again in earnest).

Don’t expect great results in the first or second quarter, but look for opportunities to buy financials on major dips. Consider re-financing your mortgage, too, as you may see sub-4% mortgage rates in the near future.

The Smart Profits Bottom Line

The moves by the Fed and foreign governments are unprecedented.

They are lowering interest rates and printing money - not just to stimulate economic growth, but also to fight off a Depression.

Will they succeed? Most likely, yes. And that means you’ll want to be on the right side of the reflation that will occur in the months and years ahead.

At the Xcelerated Profits Report, we’ve taken positions in all three of the above-mentioned sectors in order to grow wealth. So can you - and we’ll show you how to do it like the pros do. Faster and with less risk than the regular crowd. For more information, click here.

Best regards,

Karim