Wednesday, October 28, 2009

From Washington to Copenhagen - Measuring the Obama Effect

Alex Grey's Obama - Anatomy of a World LeaderImage by ~C4Chaos via Flickr

When discussing the upcoming COP-15 Global Environmental conference in Copenhagen, many pundits suggest that there are so many differences of opinion between countries and within various countries, both developed and developing, that the chances for any kind of agreement will be slim to none. I believe these naysayers have completely ignored one of today's most powerful, global phenomena, the Obama Effect.

The United States President is in full court press mode on this subject, as is evidenced by his recent push at the G20 summit and his National Energy Summit which basically lays out how he believes the United States will lead in the Green Energy revolution. He is essentially changing the game that has been played by Business and Government thus far.

Under the Bush administration the whole subject was framed as a battle between business-economy and Government-Environment. Barrack Obama has already re-framed the message as "essential" to economic prosperity. He has re-framed the word "Green" in the American Lexicon into the word "competitive", and those businesses and Governments who ignore this simple marketing message, do so at their own financial peril. So do investors.

As an investor, if you are betting against the Green revolution taking center stage at Copenhagen, then you stand to lose and lose big. A number of major players on Wall Street are already positioning themselves to benefit from this giant green shift in business. Some have even laid out their entire investment horizon over the next 20 years, based solely on the Green revolution in business. It is talked about in terms of other monumental shifts in economic power such as the Industrial revolution and the Information revolution. It will make and break fortunes in the coming years, so if you haven't already, start doing your research.

Companies with first mover status in Wind Energy, Solar Energy, Electric batteries (for autos) and fuel cell power have made jumps between 100% and 150% in just the past 8 months. It is the start of what might become the largest bull market since Microsoft and Apple first emerged as the Information age began. Once the United States lays out it's plan to lead this new economic shift at the Copenhagen summit, other countries will have no choice but to play by the new rules, or be left behind once again as the future of energy will be dictated by the worlds largest and most diversified economy. Look for fossil fuel subsidies to be replaced by green energy subsidies. The shift will be monumental.

Don't miss this great ride which is only just beginning.

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