|
Dear Cabot Wealth Advisory Reader, The news is bad. I know it. You know it. I don't have to repeat it. The Dow is down 36% since the start of the year and down 40% from its high
in 2007. Some indexes have fared far worse. But I'm not worried. I'm looking at the century-plus chart on my wall and
reminding myself that this is what markets do. Having climbed too high,
as they did last year, they correct. Bull markets morph into bear
markets. And at the bottom, the news is always terrible. Then, when the sellers have exhausted themselves, the long-term uptrend
reasserts itself. Bargain-hunters appear. Stocks are pushed upward
again. Eventually the market breaks out to a new high, bringing joy to
investors once again. Now, the news is so bad today that people forget this. They focus on the
negatives, the foreclosures, the horrible employment report and plummeting
retail sales. The most fearful of them wonder if perhaps America's day in the sun has
passed, and whether the baton of leadership will be passed to China in the
years ahead. But it's exactly at times that like this you should be
thinking about investing! In fact, I strongly believe that the time is ripe for America to begin a
new chapter in its life--the post-fossil fuel chapter. We had a fossil
fuel century; now it's time for the solar and wind century. The
transition will take time, of course; our oil and natural gas
infrastructure is immense. But technological advances of recent years
have made solar and wind power more reliable and less expensive. At the
same time, pressures to reduce carbon-based emissions are increasing.
Furthermore, we have political incentives to stop relying on unfriendly
foreign nations for so much of our oil. Add it all up, and you get a perfect storm--in a good way--that will
support massive investment in alternative energy ... and generate massive
returns for investors. And there's no question our new leadership in Washington supports the
idea. In fact, Obama has already characterized his energy plans as an
Apollo mission for the generation. To refresh your memory: Back on May 21, 1961, President John F. Kennedy called for billions of
dollars to fund a space program that would put men on the moon by the end
of the decade. Russia had put the first man in space and Kennedy vowed to
regain the technological lead with an audacious goal. The goal was
achieved when Neil Armstrong and Buzz Aldrin stepped onto the moon's
surface on July 21, 1969. More important, they returned to earth alive
and well. The Russians never got to the moon. And out of our moon landing came
technological leadership that, it can be argued, helped America become the
global leader in computing hardware and software in the decades that
followed. (It also brought us freeze-dried food, cordless power tools and pens that
write upside down.) So if you want to invest in these newer energy technologies, what do you
buy? Not General Electric (GE). Sure, the company makes wind turbines.
In fact, it has more than 8,400 installed all over the world. But GE is
so big, and so bogged down by its non-growing divisions, that it's a lousy
way to invest in alternative energy. What you want to invest in are smaller, faster-growing and lesser-known
companies, companies whose stocks will soar as investors discover them. For example, back in the bull market of 2007 I recommended First Solar
(FSLR) to readers of Cabot Stock of the Month. The company, the
lowest-cost provider of photovoltaic solutions, had triple digit revenue
growth, had recently turned profitable, and was the strongest stock of a
very strong group of solar power stocks. When we sold in early 2008, our
profit was 316%. But I haven't recommended a single fast-growing alternative energy stock
since in that investment advisory, partly because Cabot Stock of the Month
Report recommends just one stock per month, partly because it recommends
diverse investments, and partly because the markets have been rotten for
much of this year. But the landscape is changing. The market is now in the process of
putting in a bottom. Despite the fact that the news gets worse and worse,
the market is looking six months ahead ... it's already discounted all the
current bad news. The low of October stands, and many technical signs
tell us the next major move is likely to be up. So if you want to participate--and make money from--the solar and wind
century, I suggest you take a trial subscription to Cabot Green Investor,
our investment newsletter devoted to providing subscribers with the most
profitable Green investments. The first issue was published in January,
and every month since then, Editor Brendan Coffey has given his readers
the complete story on two great Green investments. For example, one of Brendan's August recommendations was the world leader
in creating and selling kits that can make your car's engine run on
natural gas or propane or biofuels. Coca-Cola recently used this
company's kits to convert 6,000 of its delivery vans! The company's third
quarter results, released a few weeks ago, saw revenues grow 62%. In October, Brendan recommended America's leading geothermal company,
which controls 250,000 acres of geothermal resources in Utah, Washington,
Oregon, California and New Mexico. Since bottoming at 2 during the
market's massacre last month, the stock has soared to 5 then dropped back
a bit to over 3. It's a hot one! Every Cabot Green Investor stock selection is well researched from a
fundamental point of view ... and these stocks have been chosen using the
time-tested Cabot system of selecting stocks based on both their
fundamental and technical characteristics. And you'll also get regular
weekly updates from Brendan, so you're always in touch with his latest
thoughts. In sum, if you're looking to participate in the Green revolution, and if
you'd like to profit handsomely while doing so, then I suggest you give
Cabot Green Investor a try. From biodiesel to solar power, recycling to
wind power, you'll find all the best Green investments in Cabot Green
Investor. To get started, simply click the link below. http://cabotmail.net/t/716499/16209685/330/0/ Cordially, Timothy Lutts
| 
