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Now that oil prices are in decline, and the global economy is finally damping commodities, there is some speculation that it is time to pull out of commodities. And, since oil prices are coming down, there is also concern for alternative energy stocks. But some investors feel that there are still good reasons to keep with commodities and green stocks. After all, these are sectors likely to enjoy overall growth for the future. Here are 11 green stocks and commodities that Stock Trading To Go thinks are likely to do well in the coming days and weeks:

1. Powershares D B Commodities (DBC).
2. United States Steel Corp (X).
3. A K Steel Holding Corp (AKS).
4. Canadian Solar (CSIQ).
5. A-power Energy Generation (APWR).
6. First Solar (FSLR).
7. C F Industries (CF).
8. Mosaic (MOS).
9. Alpha Natural Resources (ANR).
10. Massey Energy Company (MEE).
11. United States Oil Fund (USO).

Now could be a good time, since many green stocks and commodities are lower right now, making them a good value. And since commodities generally rise over time, getting in now before things start heading up may be a good idea. It is also worth noting that even though green stock may be dropping right now as energy focus shifts back to oil, eventually we will have to face the fact that renewable energy is the only long-term solution for our growing energy problems. This bodes well for renewabl and green energy stocks.

Of course, what you decide to do depends on your risk tolerance, as well as whether you see a future for these investments.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions.

Tags: stock market, investing, investing blog, renewable energy,
commodities, investments, green stocks

One of the many solutions being put into play to help the mortgage market is the encouraged issuance of covered bonds. Covered bonds, issued to large banks, are supposed to add liquidity to the credit market, and help make it easier for mortgage lending to take place. Treasury Secretary Henry Paulson considers covered bonds essential to his plans to ease the mortgage market crisis.

What are covered bonds?

Covered bonds are mortgage back securities that stay on banks’ balance sheets (rather than being moved off, like their riskier cousins). The bonds use a pool of higher quality mortgages as collateral. The mortgages in the pool are often those that are made to people who can afford them. They are often prime mortgages on which regular payments are being made. Another feature of covered bonds is that the issuer must cover losses if the mortgage borrower defaults.

Investing in covered bonds

Covered bonds are not likely to offer huge returns, but they are considered somewhat “safe” (although no investment is really safe). Here is what Felix Salmon says about covered bonds on Portfolio.com:

And as it happens, covered bonds tend to be very safe things. What’s more, because they’re collateralized, a bank failure doesn’t necessarily imply that there’s going to be a taxpayer-financed bailout of covered bonds as well as senior unsecured debt, since the bondholders should be able to rely on their collateral.

Adding another layer of protection is the fact that the government is encouraging and enabling covered bonds from large institutions — institutions like Bank of America and Citi that are often thought of as too big to be allowed to fail, similar to Bear Stearns. The assumption is that the government would arrange a bailout like what it arranged for Bear Stearns should things go further south.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions.

Tags: covered bonds, mortgage market, investing blog, mortgage market crisis,
economy, investments, Henry Paulson

As worries about a volatile stock market (which is up right now as oil prices drop) and a US dollar that is weakening overall (although rallying today) abound, some folks are thinking about diversifying into international funds.

Advantages to international funds

One of the main advantages to adding international funds to your portfolio is the fact that it increases your diversification. Diversity provides protection when properly applied. Additionally, Trees Full of Money provides two more reasons to consider international funds:

1. Protection as the US dollar declines in forex trading overall. International funds allow you to invest in instruments denominated in currencies other than the US dollar. As the US dollar loses its prominence in the world, it is likely to decline overall. This means that international assets will appreciate against the dollar, giving your portfolio an advantage. Of course, the flip side is that if the dollar appreciates, you could find your international funds losig value.
2. Emerging market access. In the US, dramatic economic growth is rare. This is because the United States is already pretty well established as an economic power. Other economies, though, in emerging markets like India and China, are growing rapidly and are likely to continue growing in the near future. International funds that invest in companies and assets in emerging market could see very solid — maybe even explosive — growth. Of course, with this prospect also comes the very real risk of larger losses.

International funds could make a very good addition to a balanced investment portfolio, if properly used. Just be aware that there are risks involved, and make sure that you have the risk tolerance for it.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions.

Tags: investing idea, international funds, investing blog, investment portfolio,
diversification, investments, forex