Summer Banks
SaraJthe obama effect
November 24th 2008 03:11
:
the obama effect
President Obama's Climate Change Policiies and a view on the impacts
The Obama Effect
Why an Obama win is a victory for Cleanchip Equities.
The simple answer, because Obama is using the transition to a low carbon economy as a cornerstone of his economic recovery plan.
Here are the stated policies released during the election campaign
Obama's campaign promises on climate change and alternative energy included:
 Make the U.S. a Leader on Climate Change.
 Ensure 10 percent of our electricity comes from renewable sources by 2012, and 25 percent by 2025.
 Implement an economy-wide cap-and-trade program to reduce greenhouse gas emissions 80 percent by 2050.
 Help create five million new jobs by strategically investing $150 billion over the next ten years to catalyze private efforts to build a clean energy future
 Put 1 million Plug-In Hybrid cars -- cars that can get up to 150 miles per gallon -- on the road by 2015, cars that we will work to make sure are built here in America.
 Deploy the Cheapest, Cleanest, Fastest Energy Source ÃÂàEnergy Efficiency
 Develop and Deploy Clean Coal Technology
Source: Really Long Link
Companies that are providing Energy Efficiency services, Renewable energy Solutions and Energy Technology will directly benefit from these policies now. The low carbon investment universe, along with the rest of the market has been sold off in anticipation for a severe US recession, or worse. The Obama policies will underpin growth in the companies that benefit directly, these companies exist in a finite investment universe and can be easily identified.
With market volatility close to all time highs, what investors want is a safe haven for their money. We at Arkx Investment Management believe our investment universe has the potential to be such a safe haven. This universe can be defined as all companies positioned to benefit from the transition to a low carbon economy. At Arkx Investment Management we have indentified 7 major themes and 34 companies that will directly benefit globally, the entire investment universe in the low carbon sector theme is approximately 550 stocks with a market capitalisation of $500billion.
We at Arkx Investment Management believe that climate change and the subsequent transition to a low carbon economy will be the source of identifiable outperformance for many years ahead.
"The current economic downturn presents governments with a historic opportunity to climate proof their economies as they upgrade infrastructure as a core response to the economic downturn," writes Mark Fulton, global head of climate change investment research for Deutsche Asset Management. We agree and believe the Obama victory is the turning point for awareness on this issue. For years now America has been the laggard on the global transition to a low carbon economy, now they are on board we believe this transition will occur at a greater pace than anyone expects.
For example the electric car, we believe the take up of the electric car will be as fast as the mobile phone, the technology is there and pricing will come down as more and more units are sold making them not only the cleaner alternative but the cheaper alternative for households. Using low carbon goods will transform from being a luxury to being the most economic alternative for households.
Just the same we believe the face of electricity generation is about to be changed dramatically, large power stations will become dinosaurs, we will source our power from smaller more localised power stations powered by renewable energy. The technology is there, again it is a pricing argument and as the prices come down renewable energy will not only be the cleaner alternative it will be the cheaper alternative.
Very soon it will make no sense to buy polluting goods, they will be more expensive. Likewise it will make no sense to invest in high polluting companies as the price of polluting becomes a larger and larger burden on their balance sheets, forcing behavioural change. It will soon be perceived as a breach of fiduciary duty not to be aware of the carbon footprint of your investment portfolio or make investment decisions without considering the current transition to a low carbon economy.
The world is in the process of an economic revolution that will be accelerated by the Global Financial Meltdown as governments turn to investment in alternative energy and energy efficiency solutions to help navigate their economies out of turmoil. Sixty-nine countries around the world have mandated renewable energy targets, with the U.S. that makes seventy, we believe they will begin to fast track the roll out of this infrastructure to boost economic growth. They will invest in the future to help us today.
So what stocks should you be buying? Here are some companies that we at arkx believe will be direct winners from the transition to a low carbon economy particularly the U.S.
1) BYD , Johnson controls and Saft  producers of batteries and a manufacture of parts for electric cars at various points in the manufacturing chain.
2) Sunpower  US base Solar power supplier.
3) Energy Conversion devices and Carmannah Holdings  Provide energy efficiency solutions to U.S companies.
The butterfly effect is part of chaos theory, it pertains that a butterfly flapping its wings in one part of the world could dramatically affect events in another seemingly unrelated part of the world, such as preventing or causing a tornado. We at Arkx Investment Management believe the Obama effect in the low carbon space will have similar, positive reverberations throughout our investment universe.
The Obama Effect
Why an Obama win is a victory for Cleanchip Equities.
The simple answer, because Obama is using the transition to a low carbon economy as a cornerstone of his economic recovery plan.
Here are the stated policies released during the election campaign
Obama's campaign promises on climate change and alternative energy included:
 Make the U.S. a Leader on Climate Change.
 Ensure 10 percent of our electricity comes from renewable sources by 2012, and 25 percent by 2025.
 Implement an economy-wide cap-and-trade program to reduce greenhouse gas emissions 80 percent by 2050.
 Help create five million new jobs by strategically investing $150 billion over the next ten years to catalyze private efforts to build a clean energy future
 Put 1 million Plug-In Hybrid cars -- cars that can get up to 150 miles per gallon -- on the road by 2015, cars that we will work to make sure are built here in America.
 Deploy the Cheapest, Cleanest, Fastest Energy Source ÃÂàEnergy Efficiency
 Develop and Deploy Clean Coal Technology
Source: Really Long Link
Companies that are providing Energy Efficiency services, Renewable energy Solutions and Energy Technology will directly benefit from these policies now. The low carbon investment universe, along with the rest of the market has been sold off in anticipation for a severe US recession, or worse. The Obama policies will underpin growth in the companies that benefit directly, these companies exist in a finite investment universe and can be easily identified.
With market volatility close to all time highs, what investors want is a safe haven for their money. We at Arkx Investment Management believe our investment universe has the potential to be such a safe haven. This universe can be defined as all companies positioned to benefit from the transition to a low carbon economy. At Arkx Investment Management we have indentified 7 major themes and 34 companies that will directly benefit globally, the entire investment universe in the low carbon sector theme is approximately 550 stocks with a market capitalisation of $500billion.
We at Arkx Investment Management believe that climate change and the subsequent transition to a low carbon economy will be the source of identifiable outperformance for many years ahead.
"The current economic downturn presents governments with a historic opportunity to climate proof their economies as they upgrade infrastructure as a core response to the economic downturn," writes Mark Fulton, global head of climate change investment research for Deutsche Asset Management. We agree and believe the Obama victory is the turning point for awareness on this issue. For years now America has been the laggard on the global transition to a low carbon economy, now they are on board we believe this transition will occur at a greater pace than anyone expects.
For example the electric car, we believe the take up of the electric car will be as fast as the mobile phone, the technology is there and pricing will come down as more and more units are sold making them not only the cleaner alternative but the cheaper alternative for households. Using low carbon goods will transform from being a luxury to being the most economic alternative for households.
Just the same we believe the face of electricity generation is about to be changed dramatically, large power stations will become dinosaurs, we will source our power from smaller more localised power stations powered by renewable energy. The technology is there, again it is a pricing argument and as the prices come down renewable energy will not only be the cleaner alternative it will be the cheaper alternative.
Very soon it will make no sense to buy polluting goods, they will be more expensive. Likewise it will make no sense to invest in high polluting companies as the price of polluting becomes a larger and larger burden on their balance sheets, forcing behavioural change. It will soon be perceived as a breach of fiduciary duty not to be aware of the carbon footprint of your investment portfolio or make investment decisions without considering the current transition to a low carbon economy.
The world is in the process of an economic revolution that will be accelerated by the Global Financial Meltdown as governments turn to investment in alternative energy and energy efficiency solutions to help navigate their economies out of turmoil. Sixty-nine countries around the world have mandated renewable energy targets, with the U.S. that makes seventy, we believe they will begin to fast track the roll out of this infrastructure to boost economic growth. They will invest in the future to help us today.
So what stocks should you be buying? Here are some companies that we at arkx believe will be direct winners from the transition to a low carbon economy particularly the U.S.
1) BYD , Johnson controls and Saft  producers of batteries and a manufacture of parts for electric cars at various points in the manufacturing chain.
2) Sunpower  US base Solar power supplier.
3) Energy Conversion devices and Carmannah Holdings  Provide energy efficiency solutions to U.S companies.
The butterfly effect is part of chaos theory, it pertains that a butterfly flapping its wings in one part of the world could dramatically affect events in another seemingly unrelated part of the world, such as preventing or causing a tornado. We at Arkx Investment Management believe the Obama effect in the low carbon space will have similar, positive reverberations throughout our investment universe.
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Comment by katyzzz
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Comment by Lilla
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I am really hopeful that Obama pulls this through the American congress, without all the blocks that can be placed on the most well meaning idealist.
In reality though (looking at the words written ont he wall here on planet earth), he is no visonary, just a realist perhaps like you and me. The changes have to be allowed now, there is almost nowhere left to hide ... and the counting is all but done.
Whilst this terrifies me (because I have children), I am relieved. Although the cynic in me is left wondering what creative efforts the ruling ones will go to ensure they continue to take the cream off the top of the jug, with energy becoming free and money worthless?
Obama knows it is time for a\change is all, but will that mean governments as well?
Lilla ...