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Sunday, November 8, 2009

HURRICANE IDA

As I yesterday reported that Ida was not projected to become a hurricane, I should correct that to say Ida is a hurricane, now at 100 MPH, and should weaken, but still make landfall anywhere from New Orleans to the Florida Panhandle late Monday through sometime Tuesday.

You generally don't read about these things in your local newspaper, but Ida did kill 32 in El Salvador, and could well temporarily affect oil prices.

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The last time I reported on my blog stock challenge was in August. At that time the value of the stocks I bought in November of last year, supplemented by my Ford and GM adventures in March and June of this year, were at 1.74, or valued at 74% more than my investment. Today, this "profit" is at 83%.

These were not particularly smart investment purchases, for I bought Lockheed Martin and Boeing because the former was pioneering the development of ocean thermal energy conversion and the latter had an interest in the hydrogen jetliner. I knew defense funds for hardware were going to be hard hit, but this challenge was mostly to encourage those firms involved with clean energy and sustainability in general. I also bought General Electric (because this company, amazingly enough, actually invented the modern wind energy conversion system, and is the leading American wind power manufacturer...but I recognized the terrible position their financial arm would be facing, and purchased anyway) and Microsoft (because I thought they would get involved with the smart grid and all the software also necessary for the new age of clean energy). Then, to balance the portfolio, I added Proshares Ultra Basic Materials, as renewable energy would need to use materials.

While there has been a general resurgence of interest in green energy, their stocks have been only so-so. Yet, with the Ford/GM (yes, including the bankrupt General Motors) additions, the average of all these buys showed a profit of 83%. Why? Brilliant investment plan? No. The smart strategy is to buy only when the market is down.
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