Even after the Fed and other central banks jumped in with a $200 billion bailout a few days ago, the market still turned on investors.
Certainly the Fed made a bold move, but it wasn't the magic solution that so many claimed it would be. And unfortunately, John Q. Investor believed the hype and once again got the rug pulled out from under him.
Folks, after that $200 billion injection, the market rallied and the dollar delivered its biggest daily gain in three months.
But two days later, oil crossed $110 a barrel, the dollar fell below 100 yen for the first time in twelve years, and the euro exceeded $1.56 for the first time ever.
Now, the same people who cheered the dollar's sharp rise on Tuesday are scrambling to find a reason for the downturn today.
What's to figure out?
The economy is royally screwed. And it seems now that no efforts by the Fed can stop the deterioration.
So what's an investor to do?
It's rough out there!
I'm not going to sugarcoat it. Not only is it rough out there, but I think it's about to get a lot worse. And anyone who tells you different is full of it.
But that doesn't mean we should bury our heads in the sand and wait for all of this to blow over. Instead, we need to focus on the markets that offer significant growth and profit potential in the near future.
Certainly that's what the big money on Wall Street is doing.
A Renewable Ray of Hope in Alternative Energy Investing
Earlier this week, analysts at Clean Edge released their Clean Energy Trends report for 2008. And their findings certainly offer something for us to be excited about.
Here are some of the highlights of the report:
· Overall revenue for solar photovoltaics, wind, biofuels and fuel cells grew from $55 billion in 2006 to $77.3 billion in 2007
· Global investments in energy technologies grew from $92.6 billion in 2006 to $148.4 billion in 2007
· Wind power is projected to expand from $30.1 billion in 2007 to $83.4 billion in 2017
· Solar photovoltaics will grow from a $20.3 billion industry to a $74 billion industry by 2017
· General Electric generated $4.5 billion from its wind business alone in 2007
The alternative energy market continued to build momentum in 2007. And even today, faced with one of the worst economic crises the U.S. has ever seen, this industry will continue to forge ahead... giving investors a reason for hope.
Why?
Because no matter how bad it gets, the world comes to a halt without access to robust supplies of cheap energy sources. And all those "cheap" fossil fuels we've been using for centuries are either no longer so cheap or dangerously close to disappearing altogether.
Whichever angle you choose, one thing's for certain: There is more long-term value in alternative energy than in anything else in the marketplace. And that's not just the opinion of an environmentalist or someone who invests in alternative energy. It's a fact, based on nothing more than the basic fundamentals of supply and demand.
Why else do you think nearly every other developed country on the planet has instituted its own policies to transition its energy economy?
Following the Big Money in Alternative Energy
Of course, here in the U.S. we're still dragging our heels when it comes to policy. In fact, many have pretty much written the U.S. off until the current administration is replaced. A sad commentary, but true nonetheless.
In the meantime, the big guns on Wall Street aren't waiting around. They don't have to. Alternative energy is a global market that's delivering billions to those who had the foresight and the cojones to pave a new way when oil was trading below $40 a barrel.
Like GE, for instance.
Here's a company that instituted its own "Ecomagination" campaign to push its line of "green" products before green was the new buzzword on Wall Street.
By 2009 the company expects its green products category to top $20 billion in annual revenue.
That's a full year earlier than the company's prior forecast.
So while the economy continues to deteriorate and the market continues to get beaten down, GE continues to make billions from the "green" movement.
Any investor with half a brain should be taking a lesson from GE's success right now: stake your claim in "green," because the long-term value is massive . . . and so are the profits.
In fact, because the opportunities in the alternative energy sector are growing so fast, my colleague, Nick Hodge has just launched a new investing service focused solely on the next generation of alternative energy technology. You can read more about his latest play here.
To a new way of life, and a new generation of wealth . . .
Jeff



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