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Wednesday's Rant
March 26, 2008

Get Your Courage On

With investor sentiment at its lowest level since 2002, and consumer confidence also at historic lows, it's obvious that there is a lot of fear out there. So, today's rant is meant to give you some courage.

I'd say we are at the beginning of the end of this bear market, which means that now is the time to step up to the plate and start nibbling on some of the stocks you want to own in 2009. And the place to begin is alternative energy. Even if this bear market keeps us in its teeth for a while longer, this sector should buck the trend. Check out this week's rant -- coming to you from my humble abode -- to find out why you can't afford to pass up this opportunity.

Toby

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.

Ask Toby: Mining Plays and the U.S. Dollar

Click here to watch. Or click here to listen.

ChangeWave Investing Editor Toby Smith covers two mining stocks he's interested in now, and when we may be able to expect a turnaround in the declining U.S. dollar.

Watch 'Bulls & Bears' on Fox News

Be sure to tune in to Fox News Channel this weekend and join Toby and the crew on "Bulls & Bears" for their weekly market roundtable as they kick off the Fox News Channel business block on Saturday, March 29, at 10 a.m. Eastern. ("Bulls & Bears" replays at 4 p.m. Eastern, Sunday, March 30, and 4 a.m. Eastern, Monday, March 31.) Or you can catch the show Saturday evenings at 6 p.m. Eastern on the new Fox Business Network.

Check your local cable listings or satellite guide to find the Fox News Channel location and times for your area. NOTE: These shows are NOT on your local Fox network station. They are on Fox News Channel on your cable or satellite system (Channel 360 on DirecTV, Channel 205 on Dish Network). Keep in mind that these schedules are subject to change, and the Fox News Channel business block and other programming may be pre-empted for breaking news events.

And if you missed out on the previous "Bulls & Bears," you can read the "Bulls & Bears" Weekly Wrap Up by clicking here.

Wine Find: Pay Day

The Cuvee de Pena Vin de Pays 2005 is a wine that I love to drink with braised foods.

This vino is a blend of Grenache, Syrah and Mouvedre grapes, and has the black cherry and licorice notes that I like to taste in wine from the Languedoc region of France. And it doesn't use oak in its vintification process.

For around $10 per bottle, it's a great deal!

To share your favorite wine or food experience, e-mail me through the form at: www.changewave.com.

Free Investment Training at the Las Vegas Money Show

Mark your calendars for May 12-15, 2008, and join the ChangeWave crew at the Las Vegas Money Show, at the Mandalay Bay Resort and Casino.

We'll help you decide if short-term trading or the traditional buy-and-hold investing strategies will best help you accomplish your financial goals.

Click here to get your free tickets now.