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Blog Action Day: Climate Change Investment Ideas

Clean Energy for AmericaImage by kd1s via Flickr

Today is Blog Action Day. Each year bloggers around the world unite to bring awareness to an issue. This year, the issue is climate change. Which is an interesting one from an investing standpoint. In recent years clean tech companies that are focused on developing technologies that can help fight global climate change have been emerging. Some of them have done fairly well. Others, however, are struggling. And all of them are affected by the recent volatility in the stock market, due to the global financial crisis and the recession.

However, with the recession over, and economic recovery slowly starting, it might be time for some investment in green tech. BloggingStocks offers some very interest climate change investment ideas. These are ideas that may not be directly involved in technologies that fight climate change, but they are companies that are trying to reduce their carbon footprint — and they made the cut to be included in Cleantech Index Fund:

  •  Autodesk: This NASDAQ traded company develops software that helps builders and designers increase the sustainability of buildings.
  • Tomra Systems ASA: This is a Norwegian company that provides systems that automates the handling of recyclable items.

These are companies that are on sale right now, and likely to rebound when the economy does, according to BloggingStocks. They are interesting thoughts. If you are interested in investing in index funds and ETFs that concentrate on clean tech, you can do so by looking into various offerings of low-cost funds comprised of companies that either provide green tech technology, or that engage in sustainable practices.

Many people believe that clean tech is the wave of the future. If you want to make money from it, the time to get in is now, while the investments are low-priced. If you wait five or 10 years, you may be too late to buy low and sell high.


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 and any loss that may result from your decisions.

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10 Stocks Likely to Tumble

By and large, now is a good time to get into the stock market. (Well, honestly, six months ago was a great time to get into the market — everything was much cheaper then.) However, if you are already in, or looking for some good, solid picks, it is important to watch out. There are some stocks that may not do well in the coming months. The Street offers its 10 stocks that are likely to be delisted in coming weeks:

  1. Sirius XM
  2. Fair Point Communications
  3. Mesa Air Group
  4. Champion Enterprises
  5. Chipmos Technologies
  6. Pacific Ethanol
  7. Emmis Communications
  8. GSI Group
  9. TLC Vision
  10. SMTC Corp

Stock picking

I’m not a huge fan of stock picking. It’s extremely difficult to beat the market, and it is generally risky to rely on the performance of only one stock. Instead, I prefer low-cost, no-load mutual funds, index funds and ETFs. However, there are many who enjoy stock picking, and do a decent job of it. The key is to look at the fundamentals, and consider future prospects for growth. Before picking a stock, it is a good idea to consider these factors:

  • Company earnings
  • Company profit margin
  • How competent a company’s management is
  • Likelihood of future demand
  • P/E ratio

There are a number of other factors to consider as well, depending on whether or not you plan to employ a buy and hold strategy, or whether you want to do a little short-term day trading. In the end, though, whenever you engage in stock picking, it is important to be careful and consider the possibilities. You should also avoid investing so much that you have to do well. Never invest more than you can afford to lose.


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 and any loss that may result from your decisions.

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Is Now the Time for Small Caps?

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The stock market is down today, thanks the latest unemployment news. With the labor market continuing to show signs of weakness, Wall Street is working through the idea that economic recovery is going to be slow in coming. However, many believe that recovery is on its way, and that now is a good time for small caps.

The Motley Fool points this out about small caps:

During the last bear market — when most stocks nosedived – small-cap stocks absolutely soared, handing savvy investors 22% a year over the next three years.

Their amazing run during the 2001-2002 recession was no fluke. Starting in the middle of the brutal recession of 1974, small caps made an epic run. Shooting up during the recession and extending their run long after the economy recovered, they returned 28% a year for nearly a decade.

And beginning in 1991, small caps powered right through a sharp downturn and kept gaining — handing investors 116% over three years.

The best part of all of these bits of history? Small caps started their run smack in the middle of the down economy — not after the turnaround. And that means right now is a great time to buy.

With stocks on sale, it is possible to find some truly spectacular deals. And with small caps likely to do well in a rebound, it might be the perfect time to get in on the market.

Small caps can be risky

It is important to understand that small caps are often considered riskier than large caps. Their smaller market capitalization means that there is less cash available to shore the company up. As a result, it is important to be discerning in your small cap investment choices. You should look for companies that show good potential, and that have healthy fundamentals.

Another thing you can do is consider small cap index funds. There area number of index funds and ETFs that provide you with the ability to take advantage of the growth likely to be experienced by small caps, but at the same time spreading the risk around and helping you diversify a little bit.


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 and any loss that may result from your decisions.

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