Here is a mini-portfolio of ten Renewable Energy and Energy Efficiency Stocks I expect to do well in 2009. Last year, I brought you ten speculative picks in Renewable Energy and Energy Efficiency, and I evaluated them against clean energy mutual funds and ETFs on Monday. I chose to go with speculative picks, because I did not expect readers to be interested in the stodgier, value-oriented picks I usually prefer.
Given the lessons of the credit crisis, if you still prefer speculative picks, you're an inveterate gambler. If I get enough requests in the comments here, I'll also come up with a list of speculative picks for 2009 as well. These stocks, however, are intended for a more conservative investor who wants to do something about global warming and possibly profit from the growing investment in alternative energy.
This model portfolio is not intended as investment advice.
*forthcoming article. Link will be broken until article is published.
For readers who feel that conglomerates like Johnson Controls, Trinity, and General Electric don't belong in a "Clean Energy" portfolio, the inclusion of SDS can also be seen as a way to offset the performance of the non-clean energy parts of these companies. If this portfolio were included in a larger portfolio containing large cap stocks, another way to acheive a similar effect would be to reduce the allocation to large cap stocks by as much money as is allocated to two stocks in this portfolio instead of including SDS.
I plan to publish updates on how this equal-weighted portfolio is performing in comparison to the S&P 500 and The Van Eck Global Alternative Energy Fund (NYSEARCA:GEX), an ETF which I consider to be the best alternative energy fund for investors looking for a single alternative energy investment.
DISCLOSURE: The author owns AGQNF, CREE, FAN, GE, JCI, NFYIF, ORA, TRN, WFIFF, and SDS.