UPDATE: Here’s how this portfolio performed in 2009.
Here is a mini-portfolio of ten Renewable Energy and Energy Efficiency Stocks I expect to do well in 2009. Last year, I brought you ten speculative picks in Renewable Energy and Energy Efficiency, and I evaluated them against clean energy mutual funds and ETFs on Monday. I chose to go with speculative picks, because I did not expect readers to be interested in the stodgier, value-oriented picks I usually prefer.
Given the lessons of the credit crisis, if you still prefer speculative picks, you’re an inveterate gambler. If I get enough requests in the comments here, I’ll also come up with a list of speculative picks for 2009 as well. These stocks, however, are intended for a more conservative investor who wants to do something about global warming and possibly profit from the growing investment in alternative energy.
This model portfolio is not intended as investment advice.
|The Algonquin Power Income Trust||AGQNF.PK||$1.82||Algonquin Power*; Clean Energy Income Trusts|
|Cree, Inc.||CREE||$15.06||Efficient Lighting, 10 for 2008|
|First Trust Global Wind Energy ETF||FAN||$11.84||Wind ETF FAN, Wind ETFs Compared|
|General Electric||GE||$15.97||Solid, Clean Companies Ready for Stimulus|
|Johnson Controls||JCI||$16.94||Solid, Clean Companies Ready for Stimulus, Johnson Controls|
|New Flyer Industries||NFYIF.PK||$6.60||New Flyer, Dividend-paying Energy Efficiency Companies|
|Trinity Industries||TRN||$15.00||Solid, Clean Companies Ready for Stimulus; Trinity Industries|
|Warterfurnace Renewable Energy||WFIFF.PK||$17.148||Geothermal Heat Pumps, Dividend-paying Energy Efficiency Companies,|
|UltraShort S&P500 Proshares ETF||SDS||$76.11||I feel there is more downside risk than upside potential for the market as a whole in 2009. This ETF is included to offset some of that risk.|
*forthcoming article. Link will be broken until article is published.
For readers who feel that conglomerates like Johnson Controls, Trinity, and General Electric don’t belong in a "Clean Energy" portfolio, the inclusion of SDS can also be seen as a way to offset the performance of the non-clean energy parts of these companies. If this portfolio were included in a larger portfolio containing large cap stocks, another way to acheive a similar effect would be to reduce the allocation to large cap stocks by as much money as is allocated to two stocks in this portfolio instead of including SDS.
I plan to publish updates on how this equal-weighted portfolio is performing in comparison to the S&P 500 and The Van Eck Global Alternative Energy Fund (GEX), an ETF which I consider to be the best alternative energy fund for investors looking for a single alternative energy investment.
Tom Konrad, Ph.D.
DISCLOSURE: The author owns AGQNF, CREE, FAN, GE, JCI, NFYIF, ORA, TRN, WFIFF, and SDS.
DISCLAIMER: The information and trades provided here are for informational purposes only and are not a solicitation to buy or sell any of these securities. Investing involves substantial risk and you should evaluate your own risk levels before you make any investment. Past results are not an indication of future performance. Please take the time to read the full disclaimer here.
I assume you meant 2009 under Articles/Notes for SDS?
Yes. Thanks for catching that. It’s fixed now. TK
Yes, I am an inveterate gambler and would love to see your list of speculative picks for 2009.
Happy New Year!–and thanks, as always, for the great site.
Very useful list.. Thanks!