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Oil and gas costs are rising as I type. Peak oil is predicted to occur between now and 2012 depending on who is doing the forecasting. What is a prudent investor to do? Well, for one, stay invested in the market.
Alternative energy has etched a hope in the psyche of the nation. We can improve the technology to lower energy costs; right now though most of the improvements available are cost prohibitive. Someday they won't be. I don't know about individual companies but I do know about hope. Rather than focus on one or two stocks in the alternative energy area, I would suggest one focus on an ETF that specializes in that arena. There are too many horses with too broad a spectrum to distinguish an obvious winner yet. With diversification one can profit until a clearer picture forms.
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Comments (1)
Becky,
After spending some time on solar while trying to write up LDK, I think its happening now, the only problem is picking the winners.
Jim Cramer (in Real Money) suggests a scatter gun approach, buy a bunch of them and then weed it down to the winners as the situation develops. That's generic advice for anytime the next big thing comes along.
My only exposure is through Applied Materials, which has been buying and developing solar technology and has booked some business. I felt they had the resources to try and pick winners.
Tom
Posted by Thomas Armistead | April 8, 2008 5:27 PM