| Invest in 2009's Hottest Sector |  Click here to watch a video of today's rant. Or click here to listen. We can officially say the denial phase of this recession and bear market is over. Think back to some of the massive financial fiascos and blowups that turned the tide in the stock market: Penn Central declaring bankruptcy in 1970; the Fed stepping in to rescue the Continental Illinois Bank in 1984; Mexico's peso debacle in 1994; and the Long Term Capital Management crisis in 1998. This brings us to 2008 and the Bear Sterns (BSC) calamity. We were staring into the abyss, but the Fed stepped in and the market rebounded more than 400 points. This is the stuff bottoms are made of! We almost certainly have reached a bottom in the financials, but that is not to say there won't be more blowups and down days ahead. For the most part, though, things can't get much worse than they are right now. Consumer confidence is extremely low and we've seen the steepest year-on-year drop in home prices since 1968. In fact, people are buying houses again, because prices are coming back in line with reality. So, investors should be thinking six to nine months down the road as they're looking at what to buy now. One area you definitely want to get positioned in is alternative energy. The 30% to 40% secular growth in alternative energy stocks will not be stopped by a recession or a bear market because: 1) Governments are beginning to mandate the use of cleaner and greener energy and technologies. 2) Alternative energy is moving closer to becoming commercially competitive with conventional energy sources. At ChangeWave Investing, we have a number of great alternative energy stocks in our portfolio. And there are a few companies in this space that are slated to come public that we're very excited about. Coskata: This biology-based renewable energy company has a technology that can turn just about anything from trash to switchgrass into cellulosic ethanol. The process is highly efficient, especially when compared with using corn, which takes more energy to convert to ethanol than it actually produces. EcoMotors: This company has designed a diesel engine that may be able to deliver 100 miles per gallon. Bloom Energy: I've been a big fan of, and an investor in, this company for a while. It has a solid oxide fuel cell, which will cost around $10,000, that can generate enough electricity to run everything in your home with energy left over to sell back to the electric company. These three companies should definitely be on your watch list as they approach their IPOs. I think you should have 20% to 30% of your investment dollars in the alternative energy space. Start picking away at the companies in this sector, because as we work through this bottoming process -- the Bear Stearns debacle was the beginning of the end of the bear market -- you have a chance to get in with an extremely low cost basis and the opportunity to double, or even triple, your money. It's time to be brave. Muster up some courage and start picking a few alternative energy stocks before they become too expensive again.  Toby P.S. It's time for investors to start getting back in the game and nibble at the stocks that will be the biggest secular growers in the next six to 12 months, and beyond. To learn about all of the great alternative energy names we're riding, and to get your 90-day, risk-free trial to ChangeWave Investing, click here. |