Investors who are interested in the emerging industry for the generation and trading of carbon credits [a web link to my blog posts on carbon credits] may find the following strategy useful for to invest in my Global Carbon Trading Index . Please keep in mind that this strategy should only be implemented for the speculative portion of one's portfolio and is geared toward US-based investors in terms of liquidity and ease of trading access. While E*TRADE offers investors the opportunity to invest in foreign markets such as London and others; my own experience with this system is disappointing.
First, strength in the US Dollar will impact investment returns since trading in the foreign markets only occurs in the local currency. Secondly, in my experience I was not able to place a trade online for the stocks and foreign markets that I attempted to place and had to call a broker for assistance, but he entered the order wrong and it was never filled. Finally, the currency conversion does not carry a commission, but you will not receive a favorable rate; so E*TRADE makes money on the spread between the real-time currency conversion ratio and what they offer to retail investors. With this in mind, the following strategy is focused on stocks and funds with primary US listings from my Global Carbon Trading Index.
EcoloCap Solutions (OTCBB: ECOS)
iPath Global Carbon ETN (NYSE: GRN)
Waste Management (NYSE: WMI)
The rationale for this basket of stocks and funds is to accomplish the following:
1.) A speculative, pure-play on carbon credit generation and trading through EcoloCap
2.) Exposure to the actual price of carbon through iPath Global Carbon
3.) A large-cap, established company which is the largest private holder of greenhouse emission reduction credits through its landfill gas capture and waste-to-energy operations through Waste Management
$34.83 (08/19/08)
