Dow 20,000 Secular Trend; Green Energy Stocks Investing

As the major secular component of the twenty-teenies bull markets, clean power technology stocks have both a secular component and an industrial, growth-oriented secular core. Sure they can rally with oil prices in a hot commodity environment, but in a period of more stable fuel prices, they have the potential to surprise with revenue and earnings growth. The key would be to accumulate during both secular and cyclical dips, and sell into secular and cyclical conversions.

Some of the key alternative energy sectors to watch:

Wind Power Stocks To Watch

Geothermal Energy Investing

Green Power Mutual Funds website

Photovoltaic Solar Power companies

Green energy stocks can fall a lot harder than the general market when commodities like gold and oil are in corrections; sector-related dips like these are great times to accumulate shares in the best firms, and confirm the value of dollar-cost averaging plans for green mutual funds.

Some of the solar energy stocks can trade in a similar pattern to silicon valley technology stocks, and buying opportunities can occur when tech stocks in general are down. Don't assume all green energy stocks trade the same, as the pattern of an Applied Materials may be different than a Vestas or an Ormat.

The post-Bush rally in global equity markets will have hiccups but will endure, for three main reasons:

1. The bottom is low by historical standards; generally when you can get stocks at prices similar to a decade earlier, value will emerge over the next decade.

2. The nature of the liquidity scare and bailout / stimulus mean a lot of anti-deflation moves, which are by nature inflationary. The Dow may need to go to 20,000 just to keep pace with US inflation over the next seven to eight years. If USA markets exhibit strength, global markets will feel more confident.

3. USA real estate prices are way behind Canadian, Asian and European numbers in these early stages of the recovery, which means that Americans will likely experience a sustained and substantial rise in home equity over the next five years. Rising real estate and stock prices tend to reinforce one another, as profits from one can be diversified into the other, while losses in one are not there to drag the other.

In summary, as is typical of a Democratic government, the USA is likely to experience a major bull market during Barack Obama's Presidency, and the green energy sectors (solar, wind, geothermal, biofuels, wave energy / tidal power+++) will rotate through leadership positions and provide the overall economic engine for North America's transition to a relatively pollution-free, infinite energy based sustainable society in the first half of the twenty-first century.

Peace and Prosperity 2 All!