Buying Green Energy Stocks Into The Elections

With the presidential elections going in full force, candidates are trying to look smart, advocating clean and green technology to solve both oil prices and global warming.

Beginning around September and continuing into next year, I believe alternative energies should exhibit a strong performance going forward.

Regardless of which party gets into the White House, alternative energy sectors are bound to benefit from all the political subsidies and focus. To stay clean and/or green, natural gas producers, biodiesel, clean coal technologies, wind, solar, and even geothermal or ocean energy companies will probably benefit.

While the US has always tried to avoid nuclear energy due to its waste disposal problem, many other countries are racing ahead to build more nuclear plants. Nuclear companies may not get a big boost from the US, but eventually it will catch on.

Having said that, I would also say that with Democrats having a much better chance of getting into White House, one must be really careful about a potential windfall profit tax on the big oil companies too. A bigger tax bill on oil will most likely increase the gasoline prices, which will in turn further depress the economy, and domestic oil demand. And Democrats will probably tax the rich more, which in the past, has led to a reduction of economic activities. Higher taxes, more regulation, higher inflation. It’s hard for me to be optimistic about government doing the right things to fix all of our problems. Of course, Obama says that it’s “change that we can believe in” or “Obama for change”. Well, changes are certain, but they’d better be making things better, not worse.

Anyway, to participate in the alternative space, one can either buy GEX or PBW or even NLR (nuclear) for the ETF. I currently don’t own any of those mentioned, but I look forward to purchase them.

With regard to individual companies, probably one would want to focus on natural gas and solar energies once they pull back. Since they were the leaders of this pack, I would suppose that they would lead again once alternative energies are in vogue (if not already). Just remember to buy several companies in a basket.

For example, the relative performance among solar energy companies: FSLR, ESLR, SPWR, STP are very different. Picking the wrong company will definitely make your portfolio to under-perform. ETF and mutual funds will probably serve you better.

Disclosure: None

Comments

[Stockguy456]

I think we will see the world go green faster than the US. Oil has too much money in congress. I do not agree that a democrat has a better chance of getting in office. ELSR & GEX seem to be the best solar plays right now.

[fatwollit]

I'm not sure what forcing the rich to pay a fair level of tax has to do with the absolute and urgent necessity of replacing an economy based on oil with one based on alternative energy but I guess that's one writer's political bias showing through.

[john s. gordon]

lack of federal regulation of the commodities futures & hedge fund 'industries' (is a casino an industry ?) has put us in the fix we are in today.
> jack

[RobDC]

"stockbuyer" if you did some research you would see that the US has been beating the EU and other "green" signatories to Kyoto in reducing CO2 emissions growth.

"fatwollit" the rich already pau what can most closely be described as "FAIR" by any reasonable definition of the word. If the system was fair, then all parties would pay into the pot equally - there would be no extra fees for the wealthy so that the less wealthy could pay less. Private charity work and non-government regulated methods are the proper way to redistribute wealth.

"john s. gordon" also WRONG. Lack of regulation by a bumbling and corrupt government has not been the problem. You are out of your mind.

[Learning Curve]

Since we seem to be on the topic:
I think we’ll see American consumer behavior change abruptly, particularly automotive and driving behavior. This “shock of gas prices” that was supposed to make people wise up once gasoline hit $6 a gallon has now begun at $4. Meanwhile, there is an ever increasing interest in other positive changes in behavior –at least all around me here on the front range of Colorado (excluding Colorado Springs). The few vociferous people who say that ‘peak oil’ is a hoax are dismissed as citizens begin to actually look into the issue.
Of course, I worry that political behavior will trump good reforms and that we’ll be a long time out of this entrapment by big-oil.
Meanwhile, with regard to Republicans being good for the economy, please to look at the actual performance of economies and stock investing as a function of which political party is in power. Review the depredations on Americans produced by Calvin Coolidge (much admired by R Reagan) and the unfortunate H Hoover. Understand the frustrations Republicans felt when a decent and insightful man (Theodore Roosevelt) became president and took on the mega-corps.
By the way, john gordon, I agree completely.

[john s. gordon]

learning curve - TR and gifford pinchot were conservationists, we haven't had one of those for a while. today a 'conservative' is a person who wishes to conserve the right of predatory corporations to despoil the land, water, air, whatever. man is the only animal who deliberately fouls his own nest & then calls it profitable to do so,
> jack

[gebby]

And Democrats will probably tax the rich more, which in the past, has led to a reduction of economic activities. Higher taxes, more regulation, higher inflation. FUNNY UNDER CLINTON WE HAD MUCH MORE PRODUCTIVE ECONOMY AND LOW INFLATION DESPITE A TAX INCREASE ON THE WEALTHY. i suppose you will credit the republican congress at the time. democrats will be great for the economy. we need mandated alternative energy solutions. not a market based move away from oil. much money will be made. foolishly wall street looks to sell the solars even now. but they are the only sector in the market with high growth and relatively low valuations. buy the solars now and look in a year. wall street hated the solars last summer also. and guess what? they practically all doubled. high gas prices and a resulting depressed economy will only feed the investment by government in solar. especially under obama as president. this will be very good. in addition, a great motivating force is global climate change. the earth doesnt care about the economy.

[gebby]

Rob dc, government has an important role to play. the greatest growth has been in economies abiding by the kyoto treaties. fair is relative to income and wealth, not per individual.
bush has sucked for the economy , no doubt about it. the world will change dramatically get ready.

[Zenfar]

For the record Clinton cut capital gains taxes on stocks and homes.

As far as speculation we need a level playing field with stocks, commodities, this could mean less regulation and margin requirements for stocks not just more for commodities. One could even argue that commodities should be more heavily regulated than stocks due to the impact their prices have on society as a whole.

One thing people miss about Nuclear energy and McCain is his time in the Navy and the large amount of nuclear talent that exists there. I would say nuclear power will be pushed heavily by McCain. But both candidates will push alternative energy hard, the question is how will markets respond to this. Will the candidates get into an alternative energy bidding war in the debates or during the campaign?

LONG: ENER, FSLR, ASTI, CPST, BCON, PBW, ESLR, BQI
Looking at: PKN, NLR, OPTT, BLDP

[srs]

Nuclear energy is only a short term solution, we would burn through all the available uranium in 15 years or less if we started relying on it.

[doctor]

I agree

[frflyer]

Those who claim the rich pay their fair share are deluded. Trickle down economics has benefitted the rich almost exclusively. Here are the numbers from the period from 1983-2004

The top 1% had average wealth rise by 78%
The richest 1% received over 33% of the total gain in wealth.
The next 4% received over 25% of the gain, as did the next 15%.
The top 20% accounted for 89% of the gain in wealth.
The bottom 80% accounted for 11% of the growth in wealth.

[fireball]

three cheers 4 robdc. the only constitutional (legal) tax in the u.s. is 4 each citizen to pay exactly the same amount. i am not rich, just at the edge of almost comfortable. i would like to become rich. if my neighbor pays $1 why is it fair for me to pay $2? it does not help the country to punish success. if the rules are different 4 the industrious it makes us want to pack up our marbles and quit. why do you suppose so many americans are expatriating. if the successful leave none will be left to finance the mommy daddy welfare state. fellow americans please stop whining. wipe your own nose and take care of yourself.

[supershort]

Since this has turned into a political debate...I ask you all one question. The poor have been voting democratic for 20 years and they are still poor, while the upper class have seen their taxes go up in those same 20 years. Political parties are all the same, one bends you over without asking but uses vasaline, the other asks but doiesn't use the vasaline.

As far as Obama's platform and as traders you all should know this. He wishes to raise the capital gains tax substantially. This is bad for EVERONE poor and wealthy alike. The guy working a civil service job just above the poverty level has stocks in his union pension fund. He just doesn't see the connection. So, in a few years when he plans to retire, his pension will be greatly reduced and social security may not be there to boot. So it will be the poor who will get poorer by these lying, unAmerican, tax and spend liberals, plain and simple. A vote for Obama is a vote to beguile and abuse the poor.

[fireball]

could not agree more supershort. is mccain any better? i liked ron paul so i knew he was in trouble. i keep hearing rumors that bob barr is running as a libertarian. i like him better than our two choices. hey does the mountain dew tug o war commercial remind anyone of a short time back when hillary was still hanging on like a tick on a dog? u know three flavors but all the same brand.

[supershort]

Yep fireball, McCain isn't my first choice. Being from NYC, I witnessed twice what Guiliani did after first a miserable Dinkins administration and then after 9/11. The man may have skeletons in his closet, but all these other guys are far worse. The problem is that he is "small time" for the lobyists. There has already been big money invested in these Hussein and McCain from before their presidential runs that the bribers want to have some fruition of their support.

I am a more of a conservative libertarian, if that can exist. Respectr and honor the Constitution, less government and economic stimulation through education and intelligence and hard work of the people. Stop with the handouts and every group claiming they are victims. There are no victims in the USA.

[supershort]

Yep fireball, McCain isn't my first choice. Being from NYC, I witnessed twice what Guiliani did after first a miserable Dinkins administration and then after 9/11. The man may have skeletons in his closet, but all these other guys are far worse. The problem is that he is "small time" for the lobyists. There has already been big money invested in these Hussein and McCain from before their presidential runs that the bribers want to have some fruition of their support.

I am a more of a conservative libertarian, if that can exist. Respectr and honor the Constitution, less government and economic stimulation through education and intelligence and hard work of the people. Stop with the handouts and every group claiming they are victims. There are no victims in the USA.

[supershort]

Yep fireball, McCain isn't my first choice. Being from NYC, I witnessed twice what Guiliani did after first a miserable Dinkins administration and then after 9/11. The man may have skeletons in his closet, but all these other guys are far worse. The problem is that he is "small time" for the lobyists. There has already been big money invested in these Hussein and McCain from before their presidential runs that the bribers want to have some fruition of their support.

I am a more of a conservative libertarian, if that can exist. Respectr and honor the Constitution, less government and economic stimulation through education and intelligence and hard work of the people. Stop with the handouts and every group claiming they are victims. There are no victims in the USA.