Solar Power Industry Shines
Last night I sat on my couch and watched the election returns. I’m sure you did the same. What we witnessed was nothing short of a historic election. This is truly an election for the record books. Now I’m not saying that just because we elected our first ever African American President. I’m saying that because of the voter turnout.
The number of people who cast a ballot was mind boggling.
I couldn’t believe the news reports. Voters lined up, sometimes for an hour or more just to exercise their civic duty. What the rest of the world witnessed was our Democracy in action. Ours is truly a Democracy embracing everyone across the nation – regardless of race or creed.
Early estimates put the turnout at greater than 135 million Americans. Those are record levels. One commentator noted we’d have to go back more than a century to see those same levels. It’s truly a new chapter in American politics.
Before I get into profiting from an Obama Presidency let me also tip my hat to John McCain.
He ran a good race. Because of McCain and other politicians like him, America is truly better off. He’s still a member of the Senate and no doubt will work to bring our great nation together.
Now, I’ll admit I have fears about Obama.
Before you get upset let me say this. I’d have the same fears no matter the winner. I’m wondering what campaign promises will Obama keep? Which ones will he break?
I still remember George Bush’s promise (George Sr. that is) “Read my lips, No new taxes!” I can hear it in my mind. It’s a promise that was quickly broken. How quickly will our president-elect break his first promise?
I started thinking about Obama’s presidency. How will he handle the financial crisis? What will he do with taxes? Is he going to help business or hurt business? The list went on and on. Three key topics jumped out at me.
The financial crisis, the war in Iraq, and our quest for energy independence. It doesn’t seem like these are related, but in my mind they are all linked together.
It’s these three topics that point me to a great investment. One that should prosper under an Obama administration.
First the financial crisis. It has many roots, but regardless of its cause it’s costing our country hundreds of billions (maybe a trillion or more!). It doesn’t matter how Obama or Congress decides to cure the crisis. The government’s going to need to tighten down on spending.
This economic bailout is truly taxing the limits of our country’s wallet. As a result, Obama’s going to need to cut costs. He’ll only be able to raise taxes so far. Probably the easiest cost to identify and eliminate – the war in Iraq.
We’re in Iraq for two reasons, terrorism and oil. We’ll be fighting terrorism for the next century. Being on the ground in Iraq might not be the best solution. Oil is the bigger reason we’re in Iraq. Oil’s needed to run our great economic engine. We’ll only be able to break from the Middle East by breaking our addiction to oil.
This means alternative energy.
Obama’s claimed to support various alternative energy solutions. If he’s able to put his support (and that of congress) behind a comprehensive plan for energy independence we’ll be a better country for it. We’d see major strides in the development of alternative energy almost overnight.
The poster child of alternative energy? Solar power.
Solar’s been held up as the holy grail by government and businesses alike. I’d expect to see more government mandates for deployment of solar. We’ll see more federally funded development programs to make solar cheaper and cost effective. We might even see tax credits for the homeowners installing solar.
All of this tells me the solar industry’s about to shine.
I was going to highlight two of the biggest and best solar companies out there. But instead of making specific investments, why not capture the whole industry. Claymore recently launched a solar ETF called the Claymore/MAC Global Solar Energy (TAN) fund.
They hold 33 of the top solar companies around the globe. The fund is small with less than $200 million in assets, but don’t let that scare you. I think with an Obama Presidency you’ll see these solar companies shine more than ever!
Category: Commodities
