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Individual investor with a Top down approach. I don't believe in diversification. Spreading your chips across the table is senseless to me, when based on good old economic fundamentals only certain areas of the market are poised to benefit in certain stages of the economic cycle.
  • Case for Alternative Energy 0 comments
    May 4, 2010 9:17 AM | about stocks: TAN, PWER, ENER, APWR, JASO, CLNE, WPRT
    Given the huge environmental impact to marine life and coastal areas, theloss of human life, economic hit to the fishing industry, and loss oftourism dollars and tax revenues due to the oil disaster in the Gulf, thereis likely to be a backlash against drilling for new sources of oil in USwaters and "dirty energy" in general. There will be an emotional responsetoo, unlike the spill in Alaska some years ago, this will hit close to home. This event and recent events with loss of human life in coal mines, another"dirty fuel" that impacts the environment too, there may be a policy shiftin State and Federal Government in response to an outcry from the publicagainst "dirty fuels." It's possible that the Obama Administration willreverse itself on the recent approval of drilling in the Gulf and articulatea new policy to focus much more on alternative clean energy. Clean energy also produces US jobs (a structural issue and politicalliability). Job creation has become the no. 1 focus of the ObamaAdministration. Moreover, it helps us to be less dependent on foreignsources of fuel. With the recent bombing attempt in NY, our dependence onforeign fuel and involvement in the Middle East will increase the urgencyfor US initiatives to become energy independent. You can even argue thatthis dependence is a national security issue. Given this environmental, economic, and political backdrop, natural gas,solar, wind and other clean energy alternatives could be in play andoutperform other sectors of the stock market in the near future. I wouldsuggest that you keep your eyes on these areas for strength and get someexposure to them. The alternative energy area has lagged the performance ofmany other sectors and could be poised to move up now, especially if oilcontinues to climb in price. Now is the time to build positions inalternative energy. Some stock ideas: TAN (solar ETF)PWERENERAPWRJASO Charles


    Disclosure: No Positions
    Themes: TAN, XLE, Alternative Energy, OIH Stocks: TAN, PWER, ENER, APWR, JASO, CLNE, WPRT
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