A Losing Race
The United States is
losing the renewable energy race. And as you might guess, it's
China that's out in front.
China has pledged $738 billion for
renewable energy projects over the next 10 years. The U.S.? Well, not so much.
Our $700 billion stimulus plan set aside a paltry $36
billion for renewable energy projects. And Congress has already started
eating into that allotment to fund other spending.
China, on the other hand, set aside $221
billion for renewable energy projects.
Of course, we all understand that China has more cash to invest in its
economy. But the issue here isn't just about helping an economy recovering.
It's about energy prices and jobs.
The International Energy Agency (IEA) estimates that there's
a $27 trillion market for renewable energy over the next 50 years. That's
potentially a lot of jobs for Americans. Maybe millions. But we're going to
lose those jobs to China.
We need jobs. We need cheaper energy. But the political will
to make the proper decisions simply isn't there.
TradeMaster
Jason
Cimpl is turning bullish after last week's sell off.
From his morning advisory to his TradeMaster Daily Stock
Alerts:
Despite the persistent selling, all indices stayed above
major support levels. For the SPX 1085 has been the number to watch and it
needs to hold once again this week. While the bears are in control of the
momentum, that selling has become overdone. The market is oversold, and the
dollar needs to consolidate. The selling, if any, should be corked near 1060
(on the S&P 500) and rebound sharply back up to current
levels.
Jason is also recommending a Chinese alcoholic beverage
stock that recently IPOd on the Nasdaq. Currently trading at $8.50, this
stock put in a strong performance during last week's declines and looks
poised to move 10% higher in the next few days. Ultimately, Jason says
"The stock is cheap given its earnings history and sales growth…at 10
times its forward EPS this is a $20 stock."
You can learn more about TradeMaster Daily Stock
Alerts HERE
Treasury bonds are
up huge after the Fed announced it will continue to buy Treasuries on the
open market. In fact, the iShares Barclays 20+ Year Treasury Bond ETF
(TLT) is at a 52-week high.
That's not good for stocks, as bonds compete with the
riskier asset. However, it's also likely that traders will take profits from
their bond trades. Redeploying the profits into stocks would certainly help
the stock market.
The housingmarket
should be one big beneficiary of the Fed's bond-buying plans. Tomorrow
morning, we get Housing Starts and Building Permits data for July. And
believe it or not, some economists are expecting a decent number. A recent
Commerce Department survey shows that new housing starts probably grew 2% in
July.
The housing market has been struggling to recover after the
expiration of the homebuyer credit. But with homebuilder stocks all near
their 52-week lows, tomorrow's data could provide some upside.
As always, you can
write me with your comments at dailyprofit@wyattresearch.com.
