We all know as oil prices go up, investment in alternative energies do also.  Most people believe that there are a few alternatives (ie solar, wind, ethanol, geothermal), however, we can produce energy from people walking (MIT students), bacteria eating feces, etc.  With these advances do you still think the normal alternatives are whats going to take the center stage (in order words a wise investment)?

If so do you think one will take the cake (wind?) or do you think its best to play it safe and buy wind, solar, and other big player stocks.  I find alternative energy very interesting so I'd like to hear what everyone thinks!

 

Scott

I've been happy with ETFs like PBW.  There is also PBD and PBZ, depending on your take.  The point of "socially responsible" investing is to invest in things you beleive will positively impact the world, and not be too concerend with a small loss. 

PBW is fairly volitile, but nothing compared to the small-mid cap components that make it up.

As for energy, solar will take off.  the only thing is that you may not be able to ride it up because large, diversified companies like GE, BP, and others will invent or buy the ideas that come to the forefront.  Large corporations will likely be required to achieve the volume of installs for the widespread use.

Ethanol will take off, artifically if it has too.  Solar energy is not reliable enough and is not contained within cheap cans, like liquid fuel is.  Unless a cheaper, less toxic, and lighter form of battery is made, there will always be an advantage in being able to burn fuel for energy.  Further, the infrastructure for widespread electrical distribution of electricity is not there (IMO) to allow refueuling of the transportation AND cooling AND industrial uses of power in the summer. 

A key secondary market, if you beleive the above, is that of the battery market, and associated markets like nickle mining/recycling.  As well as silicon or semiconductor materials (depending of what solar design type emerges as the winner).


This all said, none of this will happen overnight.  and these are fairly volitile investments, with First Solar and Trina Solar having several +5% and -5% days.  don't expect a smooth ride to the top!

With the market as it stands today, some of these securities may see a drop in value as traders lock in profits and sell off risky assets.

I'm currently reading a great book on the subject called Solar Revolution. The author goes through each of the different types of alternative energies and shows how they can't compete compared to solar (referring to wind, geothermal, tidal, biomass).
  As a previous poster mentioned, biomass for cars could take off as solar cannot be canned. Hoever, hydrogen fuel cells can be transported easily. The argument the author makes is that if solar takes off (which is what the whole book is arguing), then the super cheap electricity could be used for electrolysis of water. Simple plug one into a car and let the oxygen and hydrogen combine and you have clean energy for cars. While this argument does make sense, it will happen only after solar has already made electricity cheaper. By then biodeisal could have taken over. Fuel cells might take control 50-100yrs from now (or never), but definitely not soon.

cdstahl:

I've been happy with ETFs like PBW.  There is also PBD and PBZ, depending on your take.  The point of "socially responsible" investing is to invest in things you beleive will positively impact the world, and not be too concerend with a small loss. 

PBW is fairly volitile, but nothing compared to the small-mid cap components that make it up.

As for energy, solar will take off.  the only thing is that you may not be able to ride it up because large, diversified companies like GE, BP, and others will invent or buy the ideas that come to the forefront.  Large corporations will likely be required to achieve the volume of installs for the widespread use.

Ethanol will take off, artifically if it has too.  Solar energy is not reliable enough and is not contained within cheap cans, like liquid fuel is.  Unless a cheaper, less toxic, and lighter form of battery is made, there will always be an advantage in being able to burn fuel for energy.  Further, the infrastructure for widespread electrical distribution of electricity is not there (IMO) to allow refueuling of the transportation AND cooling AND industrial uses of power in the summer. 

A key secondary market, if you beleive the above, is that of the battery market, and associated markets like nickle mining/recycling.  As well as silicon or semiconductor materials (depending of what solar design type emerges as the winner).


This all said, none of this will happen overnight.  and these are fairly volitile investments, with First Solar and Trina Solar having several +5% and -5% days.  don't expect a smooth ride to the top!

With the market as it stands today, some of these securities may see a drop in value as traders lock in profits and sell off risky assets.

For an ETF, GEX has lower expenses at 0.65%.

Mike