We’re all ready for a new year.
And after sitting down with my InvestorPlace colleague Matt McCall earlier this week and sharing our viewpoints on what 2021 has in store for us, we couldn’t be more excited.
The future holds a lot – plenty of opportunities and dangers alike. But by putting together a diversified portfolio of high-quality stocks, you can set yourself up to make good money no matter what the market… or the economy… or the government… or COVID-19 throws our way.
That’s exactly what we did last year, and now we’re very busy planning for our special Early Warning Summit 2021 event next Thursday, December 17, at 7 p.m. ET. I encourage you to click here to sign up now.
In the meantime, we’re getting you started with some of the most important things to be aware of as you plan for 2021. Yesterday, we talked about the tidal wave of cash that’s about to hit the markets.
Today, we want to focus on one area that was also on our radar last year. Growth in this space is just beginning, and we think 2021 will be its year.
We’re talking about infrastructure and clean energy.
During the 1900s, the world relied almost exclusively on “dirty” fuel to produce electricity.
Coal, for example, was responsible for more than 50% of U.S. power generation. It was also responsible for most of the electric power in China and India.
Burning coal and other fossil fuels produced huge amounts of energy. They were by far the most attractive fuel sources in the world on a cost basis.
This low-cost energy powered amazing economic growth. It powered factories that built cars, refrigerators, computers, trucks, and televisions. It lit up hundreds of millions of homes around the world.
However, that growth came at a price.
Burning all that fossil fuel produced a lot of pollution. Many of the world’s top scientists believe man-made climate change is causing temperatures to climb, sea levels to rise, and ice caps to melt.
This is why climate change is often cited as the number one worry for people around the world. Many see it as the biggest crisis of our time.
And many people see renewable energy – which comes from fuel sources like solar and wind energy – as the solution.
So it makes sense that Joe Biden has big plans for clean energy during his presidency. I wouldn’t be surprised if 2021 is the year that a massive infrastructure/clean energy bill is passed
The odds of such a bill should be a full 100%. U.S. infrastructure needs a major upgrade, but unfortunately our politicians sometimes forget about the needs of the country. But an infrastructure bill is coming eventually, and when it does, we expect the focus will be on clean energy.
According to a plan that Biden laid out during his campaign, a total of $5.4 trillion could be spent if he gets his way. That number is astronomical, but it could happen. Add that to another stimulus bill, which we think is likely, and you have a lot of money coming into the economy. This is clearly bullish for stocks.
Biden’s clean energy plan could account for more than $2 trillion of the $5.4 trillion total. The focus will be on solar, wind, electric vehicle (EV) charging stations, and the like. Expect to see a combination of tax credits as well as money earmarked for more research and development in the industry.
At the top of the list will be techniques such as solar, battery storage, improving the nation’s power grid, and a major switch to EVs to lower emissions.
Clean energy has been a high-growth trend for years… and it is now about to move into hypergrowth territory. We expect Biden will run into some pushback from a Republican Senate in trying to approve such a massive bill, but in the end a deal will likely get done.
And when you’re talking about that kind of money, you can be sure there will be direct stock market implications.
Solar and wind power are quickly becoming the lowest cost source of energy in several countries around the world – and soon they will be everywhere. The days of having to choose between clean energy and the cheapest energy source will soon be over. The logical and economical choices will be solar and wind. Once they are cheaper, it’s game over. We all know that at the end of the day, it is about the money.
With clean energy making up only about 9% of the $6 trillion global energy industry, there are trillions of dollars at stake in the coming years. And to prepare for all this extra money sloshing around, we want exposure to the sectors that should benefit the most.
This is the way we as investors need to think, and you can bet these industries are on Matt’s and my radar.
The infrastructure and clean energy trend holds a lot of promise in 2021, but it’s not the only one. Our computer models and research have us very excited about what’s to come, and we’ve not only identified the biggest trends that will have the largest and most immediate impact… we’ve also identified how to take advantage.
We’ll talk plenty more about that in the coming days. And then we’ll get into the nitty gritty details of the big market moves we see impacting stocks in 2021 in next week’s Early Warning Summit 2021.
It’s 100% free to attend. All you have to do is let us know you’re coming.
Tomorrow, we’ll be back in touch to share our thoughts on how investors should look at all the government money coming into the markets and its impact on currency. We know that’s on a lot of investors’ minds right now.
We look forward to seeing you at the event on Thursday. Click here to sign up.
P.S. Matt and I see a lot of great opportunities lining up for 2021. But you need to be VERY selective with your money moving forward given everything that’s happened in the world.
And you need to have a proven game plan in place for the moments when the markets get rocks.
We both see big moves coming to the market in 2021, and we’ve created a unique approach to exploit these moves for big gains.