At this point, we may sound a bit like a broken record. But I'm going to say it yet again...
As the price of conventional energy rises, alternative energy becomes more competitive. Consumers and companies may not always be environmentally driven to look for alternatives. But you'd better believe they'll be financially driven.
That, my friends, is the reason we're going to continue to profit from this market.
And we're not the only ones.
Here's what Nick Parker, chairman of the Cleantech Group of analysts, had to say about "clean" technologies:
"There's no doubt this year will break records in terms of the amount invested. But this year will also be notable for the amount of commercial take-up of clean technologies."
According to Mr. Parker, this sector (which includes renewable energy, water technologies and carbon reduction technologies), is now the biggest recipient of venture capital funds in the U.S. And just in the first three quarters alone, roughly $3.8 billion of venture capital was invested.
Of course, that's just venture capital.
Last year, total investment in "clean" technologies hit $74 billion.
Interestingly enough, a couple of days ago I was thumbing through an old Cleantech report that Clean Edge put out in 2001. Here's an excerpt from it:
"Investment money will pour into clean technology firms at an accelerating rate as investors, though chastened by the nosedive in technology stocks, view clean tech's attractive growth potential. During 2000, more than US$1.4 billion of equity investments were made in clean-tech companies by angels and venture capital firms. Adding the money invested in clean-tech firms through initial public offerings the total escalates to more than US$2 billion."
Who in their right mind could possibly believe that this is anything but the most lucrative market we'll ever see?!
A flash in the pan?
I don't think so.
Since 2000, electricity rates have been increasing at a 2.5 percent annual rate.
But in 2006, the Energy Information Administration announced that electricity prices in the U.S. had increased by more than 9 percent.
Of course, that's nothing compared to the 72 percent spike in electricity bills consumers in Baltimore saw this year.
And from 2000 to 2005, oil prices rose 69%.
But from 2005 to today (less than two years), oil prices have shot up 92.9%.
And it's only going to get worse.
Fortunately for us, we've figured out a way to exploit the energy crisis (as well as the multitude of environmental issues stemming from fossil fuel use) for profits. Just like all those big institutional investors and VC hotshots.
It's called alternative energy. And believe me, it's going to make us rich!
To a new way of life, and a new source of wealth . . .
Jeff
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The recovering politician is teaming with Kleiner Perkins Caufield & Byers a legendary venture capitalists and bigtime moneymen to make over the $6 trillion global energy business.
The term "global market" is, I believe, the key phrase in the press blurb.
I believe that we will see some very positive investment possibilities both in individual companies as well as the market sectors in which they place their venture capital. It will take some ear to the ground researching, a lot of work, and a strong stomach, but the possibilities are enormous.
This type of work and effort have rewarded me well with regard to Google, Apple, and few other tech stocks. I believe the energy market has the same if not more possibilities for long term, patient investors. For traders, the task may be more like trying to find a needle in the haystack.
I would like some more information regarding ETF's, both USA and international that offer a baskets of stocks in alternative energy. I think they might be a little safer investment until we see where the market shakes out and what energy sources will be the most likely to succeed. I have one basket of green energy stock, but I know very little about the energy market; so any guidance you can give would be appreciated.
Thanks