Considering that the global credit markets collapse deflated a still-forming alternative energy stocks bubble in 2008, the 80 to 90% drops experienced by quality clean green power companies have set the stage for a multi-year rally in renewable power stocks.
New developments in areas such as thin film solar, concentrated solar, wave energy / tidal power, geothermal energy, flywheels, offshore windpower, the list goes on and on, mean that public and private sector investments will provide increasingly cleaner and more diversified energy generation. It is still early days and for those who have not yet set up dollar cost averaging programs into green power mutuals funds, it is a prudent strategy when included in a portfolio including cash, bonds, and even real estate! One great rule of thumb that is an excellent starting place is to utilize your age for the perecentage of assets to be held in cash and government bonds. A 30 year old would have just 30% in these shorter term securities, while a 70 year old finds that over 2/3 of her portfolio will always be secure, if proper rebalancing occurs. If the past year hasn't taught people the importance of rebalancing to lock-in gains, then they are probably not ready to re-invest in battered equity markets to restore the growth portions of their portfolios now. Many will compound the error of not rebalancing before, by not rebalancing now. A very conservative investor should add 15 or 20% to their age, while a more growth oriented longer term investor may want to subtract 10 or 15 years from her age percentage, with the subsequent higher risk / higher reward profile.
My initial prognosis (formed a decade ago when many names were still vencap) that the publicly-traded clean power stocks would top out in 2008/2009 was hastened and deepened by the world financial crunch, so rather than facing a 3 to 4 year rally, we are likely looking at a post-Bush rally in global equity markets that may last 5 to 7 years. Many PV solar and wind energy companies are dirt cheap nowadays, and they and other green power stocks will provide torque to global equity funds for most of the next decade.
Peace 2 all,
Joe College
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Welcome to Green Stocks Investing! Many of you know me from my longtime work for WindIntell.com, SolarIntell.com, PV Intell and Geotherma.info. I have launched Green Stocks Investing Info as a central portal for all of us to communicate through.
Research publicly-listed renewable energy stocks including solar power companies, wind energy stocks, geothermal power producers, wave energy, tidal power, green mutual funds, emerging clean energy technology companies.
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Showing posts with label clean energy funds. Show all posts
Showing posts with label clean energy funds. Show all posts
Sunday, April 5, 2009
Wednesday, October 1, 2008
Investing Bargain of the Decade; Clean Energy Mutual Funds
The slide in oil prices combined with the downside volatility of the stock market in recent weeks has created an extraordinary investment opportunity for long term investors: clean green power funds, renewable energy investment funds, exchange-traded alternative energy funds and other diversified green stock funds. Due to energy security and global warming concerns, these stocks will be in big demand over the next five years, and it is much safer to buy a widely diversified stock fund, even a sector fund, than it is to buy individual stocks.
A single company's share price may be down because the firm is in trouble and the shares are on their way to zero, but green mutual funds and clean energy closed-end funds are down because of market and sector comnditions, and over time will reflect the longer term potential of the sector and economy at large. With many clean power funds down 30% to 40% now is the time for aggressive investors to buy, and for medium risk investors to begin dollar-cost averavging into these alternative enrgy funds.
Here are a few green energy funds to consider:
CGAEX at 12.26 is off 35% from its previous year high.
International solar energy index fund down about 35% from the high.
Tracks performance of ISE Global Wind Energy Index; down 39%.
Index fund tracks USA green energy stocks; off 42%.
Down over 40% from the one year high.
Down 34%; formerly Van Eck Fund
Off 34% from its high.
Year's high was 38.02; recently closed at 26.70.
Diversified Wind Power Fund off 40% from the year's high.
Down over 45% from the 52-week high.
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