Tom Konrad, CFA
My Green Energy Investing for Experts series looked at ways shorting could both protect your portfolio against market decline, and make it greener by shorting decidedly non-green companies. This is an index of the entries, plus one more industry for you to consider.
Green Energy Investing for Experts, Part I made the case that shorting stocks that are particularly vulnerable to peak oil or climate change is a good way to hedge a portfolio of green stocks against a market decline while making the whole portfolio greener.
Green Energy Investing for Experts, Part II looked at shorting Mexican stocks.
Green Energy Investing for Experts, Part III discussed using puts in case shale gas is not as big a game changer as the industry would have us believe.
Green Energy Investing for Experts, Part IV looked at shorting airline stocks.
Green Energy Investing for Experts, Part V looked at using puts on coal miners, because the muddle in Copenhagen and "climategate" are unlikely to be the end of the coal industry’s woes.
I don’t know about readers, but after writing these, I find this series formulaic. I’m not an expert on any of these industries, so my analysis doesn’t go into much depth beyond pointing out each industry’s vulnerability, and then finding a few stocks or an industry ETF to short.
I’m not out of ideas for industries that are unprepared for peak oil or climate change. Preparedness is still much more the exception than the rule.
My best ideas were air travel and Mexico. I’ll leave the rest as an exercise for the reader. One such is the trucking industry. I personally have sold a short call spread on JB Hunt (JBHT.) Take a look at my article on Newsweek’s Green Rankings for a couple more.
DISCLOSURE: Short JBHT.
DISCLAIMER: The information and trades provided here and in the comments are for informational purposes only and are not a solicitation to buy or sell any of these securities. Investing involves substantial risk and you should evaluate your own risk levels before you make any investment. Past results are not an indication of future performance. Please take the time to read the full disclaimer here.
