November 10, 2010

Investing in energy might boost your portfolio’s performance…

America is somewhat curbing its dependence on foreign oil by investing in “clean energy” and by making improvements in its infrastructure. Our historical “oil-for-dollars” policy has been a significant transfer of wealth and will potentially jeopardize America’s standing as a world power amongst others...if we don't act now.  The Obama administration is spending billions of dollars to not only create jobs – but to also make necessary improvements to make America greener and somewhat more self-sufficient.

What does this mean for you?

Well, even if you’re not one of the individuals that will be employed by this investment in infrastructure – you can still make some money by America becoming green.

A big investment from the Obama administration is directly related to an increase in public transportation…or electric trains. In order to reduce our dependence on foreign oil – we need less cars and trucks on the roads. One way to do this is by having more electric high speed trains that can get people from point A to point B. By the way, AMTRAK has recently reported a deal with Siemens to develop more electric locomotives with the first being delivered in 2013. AMTRAK also plans to expand its entire fleet over the next 30 years.  Click here to see this article.

Not everyone will be able to ride a train, unfortunately, which is why there are new fuel standards for every car to reach at least 35mpg in 2016…which means there will be more electric and/or hybrid vehicles on the road in the future (Nissan just released its all-electric vehicle called the Nissan Leaf).

What should you invest in?

A smart move would be to include some stocks and bonds of utility companies, coal mining companies, nuclear companies, and battery manufacturers to name a few. Let’s not forget that other countries besides America needs these resources as well…and as more emerging economies seek expansion and more global influence, expect these commodities to become a bit more expensive. This means more profits for you. Call it your “paper-dollar-for-real-commodities” policy!

BE FREE

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