With the energy crisis at hand, more people have become conscious of being more environmental friendly and more people are starting to change their habits.

It will take much longer for societies to embrace green habits and change their way of thinking, but progress is being made. Right now, green marketing doesn’t work because it doesn’t clearly explain how a product or service will benefit the consumer, but as more marketers study the motives and driving factors of green products and services, they will find methods that work.

As they do, we will begin to see the next bull market in the green industry.

Since 2001, the wind industry has grown 339 percent; the solar industry has grown a whopping 579 percent; both are projected to continue their blockbuster double-digit annual growth into the foreseeable future. In contrast, the Dow Jones average has climbed just 2 percent during the same period, and is only barely hanging on at those levels because of the artificial boost produced by talk of the bailout.

This green economy reminds me of the computer revolution in the 80’s. It took about a decade for consumers to realize the benefits of the personal computer, and then with the introduction of the Internet, the entire computer industry took off. However, just like the computer industry, not all companies involved will succeed. Dell and Gateway were the ones that shined during the 1990’s as many other companies failed. The green economy will see many new companies enter the market and many will fail while few have tremendous success.

This is why it will be important to invest in many different companies in the green economy. There will be a lot of great technologies that come out of it, but only a few will become “the standard”. If you have your money diversified, you will have a greater chance of catch the next Dell stock.

So be ready. Be ready for the green industry to pick up Wall Street and carry it on its back.

*This is not financial or tax advice, please see your financial advisory before making a decision on investments

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Tags: green economy, green industry, green investing

This entry was posted on Saturday, September 27th, 2008 at 8:23 am and is filed under Alternative Energy, Green. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.