PowerShares WilderHill Clean Energy(ETF) (PBW)

RandomGuy123 (54.73) Submitted: 4/06/07 4:53 AM : Start Price: $19.48 PBW Score: 12.56

Alternative energy is certainly not for the faint of heart. It is an industry comprised mainly of small, speculative start up companies with big plans, and many will probably fall by the wayside. However, to ignore the industry as a whole, and PBW by extension, constitutes a gross miscalculation in long term investing strategy. No one can deny that the shift towards clean energies is getting stronger, and as escalating tensions in the middle east translate into higher oil prices, clean energy's momentum is almost certain to increase. Factor in government subsidies and increasing social and political support, and PBW begins to look like an excellent buy. Sure, there will be hiccups as startups go bankrupt, but there will also be high flying success stories which will offset the losses. Remember - An investor can only lose 100% of his investment if a company goes bankrupt and he holds til the end, but the upside is literally unlimited on a good investment. For example, out of ten companies, if 7 go bankrupt, and three triple in value, you have broken even, and anything beyond that is profit. PBW certainly invests in some speculative picks, but it is highly unlikely that 7/10 of them are going to go under. Bottom line - The upside is much greater than the downside. Buy PBW and hold for ten years, and you won't be disappointed.

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