My 1st Million At 33 – yes, you can do it too

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

Probably starting September to next year, I believe alternative energies should exhibit a good 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 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 US, but eventually it will catch on.

Having said that, I would also say that with Democrats having a much better chance (at least in my opinion) of getting into White House, one must be really careful about the 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 demands. 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, they or 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. As on 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 if you are into stocks yourself. 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.

Frugal at 1stMillionAt33.com