With the worst apparently behind us, Brenday Coffey looks to where the new growth will come and sees Green.
An Interview with
Brendan Coffey, Editor of
Cabot Green Investor1/5/09
What advice are you giving subscribers/clients to weather the storm?Gauging both sentiment and trading patterns, it does look like the worst is behind us in the overall market. A full-fledged bull market still isn't a given any time soon, but with markets calmer, there are now opportunities for good buys on solid companies that offer excellent growth potential.
One positive we're focusing on is that the new U.S. administration promises to bring both stimulus spending and targeted tax cuts which we believe is the correct approach. We also continue to be encouraged by burgeoning interest in alternative energy and environmentally friendly products, which will drive a wave of growth companies whether or not the broader market takes off.
Is your focus on safety or profits or both, and why?Both, although profits is the primary objective. We advise readers to treat our portfolio as only a portion of their overall portfolio, and for that reason we look to take on more risk than if we were presenting a total portfolio to readers. However, we are quick to move to cash when our indicators tell us to, which is why we avoided much of the damage of late 2008.
The market dictates the type of stock we focus on. In this environment, we're focusing on companies with positive earnings, low net debt and unique product offerings and positioning that give them a competitive advantage in their markets.
What do you think it will take to inject confidence into the markets?A feeling that the regulators and government understand the situation and have it in hand and that steps are being taken to keep derivative instruments from being such an integral part of hedge funds and investment banking as they were for the past five years.
Would you have voted for or against the last "rescue" bill, and why? If you mean the auto bailout, yes, for two reasons. The auto industry is still one that, if run well, can be profitable and a growth sector in the U.S. economy. The other is simply that with so many jobs dependent on the sector, punishing workers for managerial incompetence does no one good at this stage since having wholesale business failures has the potential to cost taxpayers more anyway.
What would be your fix for the financial sector, and is a fix in this sector necessary to boost the markets?Greater oversight and regulation of derivatives trading and greater oversight of hedge funds, something managers such as George Soros, John Paulson and James Simons endorsed before Congress late last year. Greater oversight can restore confidence in major banks in each other which in turn makes them more willing to provide credit, ultimately making it easier for capital intensive industries, such as solar, wind and biofuels, to make the long-term investments needed.
How does your advisory service help its subscribers/clients get through times like these? All the editors at Cabot give readers the ability to ask questions via email, which we both welcome and respond to in a timely fashion. We also provide free weekly updates on the stocks we discuss on our monthly issues and special alerts when needed.
If you had an average investor standing in front of you, what would you say to him/her to ease concerns and raise confidence in the economy and markets?With the market, remember that it is forward looking, so while the present economy is difficult, the markets are looking ahead to where growth will be coming from. As it becomes more apparent that last fall's crash was the bottom, sentiment will continue to improve. Regarding the economy, the U.S. has proven time and again it is the most resilient and dynamic economy and therefore the best suited to emerge from the storm the fastest.
Visit these links for more information on Green investing:The Outlook for the New Generation of Biofuels
While biofuels used to be an endeavor for hobbyists and hippies, they are fast becoming the core of a multibillion-dollar industry.
What Does a 100% Renewable Energy World Look Like? What if we all resolved to go cold turkey on fossil fuels to save the planet from the global warming and free ourselves from oil-driven political entanglements?
A $5 Trillion Market Predicted for Carbon
The push to reduce greenhouse gases and shift to alternative energies is just beginning.
Tipping Point for our Gasoline-Centric Transportation System?Tim Lutts thinks we're in the midst of a tipping point driven by the simple fact that the current situation is untenable.
Has the Time Come for DIY Solar? Now that Lowe's Home Improvement stores have begun selling do-it-yourself solar panels kits.
Alternative Energy Stocks Shaping Up to be the Next "Home Run" SectorThe world shift to Green will make alternative energy stocks the top sector of the coming decade.
A New Perspective on Alternative Energy InvestingTim Lutts studies the expansion and subsequent shrinking of the Internet stock universe and relates it to the growth of today's alternative energy stocks.
Green Investing Promises Long-Term ProfitsMost people invest for profits, and companies with Green solutions will generate the big profits.
I'm Not a Green Person...Or Am I?We're all becoming Greener every day. Even if you're not a stock analyst, it's easy to see there's a great investing opportunity in that.
Three of the Most Compelling Reasons for Green InvestingThe movement to cleaner, more sustainable sources of energy and healthier consumer lifestyles means there will be long-term Green stock winners.
A Rant on Energy PolicyThere's one huge issue that just drives Cabot editor Paul Goodwin nuts. The issue is energy, and U.S. national energy policy...or lack of one.
Exciting Developments in Car TechnologyWe're seeing many exciting new Green car technologies that offer major growth potential.