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InvestWELL Report |
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Question:
How can I invest in the green energy that supports sustainable development?
Answer: The green sector includes firms involved in solar, wind, water, fuel cells, micro turbines, battery storage, etc. The following two indexes consist of companies that support a sustainable environment: WilderHill Clean Energy Index (symbol ECO) and WilderHill New Energy Global Innovation Index (symbol NEX). More information about them can be found by entering the symbols on the American Stock Exchange website www.amex.com
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(Cumulative %)
InvestWELL Picks & S&P 500
Investment Strategy – MEMBER SECTION
Chart 1.
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- During the last month,
the US equities registered a big decline (Chart 2 & 3) following a sell-off in China. At least, this is the official version from the media which always believes there has to be a short-term trigger for every day ups and downs. In our humble opinion, the market had been grossly overextended and any excuse for a correction was a good excuse.
Charts courtesy of StockCharts.com
- During the last month,
the Canadian equities mirrored the performance of the US equities. The Canadian index rebounded from its February lows but failed to return to its previous high.
Charts courtesy of StockCharts.com
- Last month,
the US employers added 97K new jobs, while the unemployment rate fell to 4.5%. The slowing housing market and the return of winter weather prompted job cuts in construction which had a negative impact on the hiring decisions.
- Last month, the number of jobs in Canada increased by 14K. The last month's gains came despite a railroad strike, which resulted in a loss of 34K jobs off the goods-producing side of the economy.
- U.S. home prices fell 0.7 percent in the fourth quarter, according to Standard & Poor’s. This is the fastest rate home prices have fallen since 1992. Overall home prices rose only 0.4 percent last year.
- According to CreditSights Inc., rising mortgage defaults by sub-prime borrowers may add more than 500,000 homes to a residential real estate market already beset by slumping prices. A five-year housing boom that ended a year ago was fueled in part by the growth of mortgage products marketed to borrowers with poor credit histories. Now, as defaults on sub-prime loans surge to a seven-year high, more than 20 lenders have closed or sought buyers since the start of 2006. The survivors are raising their lending standards.
- The European Central Bank raised interest rates for the seventh time since late 2005 to stem inflation after the fastest economic growth in six years. As inflation is below the bank's 2 percent limit and the economy is showing signs of cooling, some investors say the central bank has already reached that point.
- The first U.S.-listed hedge fund soared 68 per cent after the Initial Public Offering (IPO) started trading. This type of debut is likely to encourage others to list. Fortress Investment Group LLC's shares opened at $35 after pricing at $18.50 the day before, in the best debut for a U.S. initial public offering since commodities exchange Nymex Holdings Inc. more than doubled on its first day of trading last November.
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(see
explanation)
Here is a direct quote from the Behavioral Section in last month’s Member newsletter: “Contrary to our expectations, the market continues to defy gravity and keeps going up and up (charts 6 – 8). There are certain historical relationships which we follow, and they are flushing warning signals. Unless these relationships no longer apply (which is quite doubtful), the market will correct itself and return to reality.”
Charts 6 - 8: Advancing/Declining Line, AAII and Equity Put/Call Ratio
Charts courtesy of StockCharts.com
and DecisionPoint.com
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B is correct. SRI would not want to invest in anything related to manufacturing of weapons.
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Thank you for reading InvestWELL Report.
InvestWELLFinancial.com
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