This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Place Your Bets on Global Warming

NEW YORK ( TheStreet) -- How do you invest if you believe man-made global warming is about to decimate the planet? And how do you invest if you think that's a lot of hooey?

Most would say those who deny global warming should first bet on coal, oil and gas, but that's no way to make money. If you think your thesis is right, you bet on stocks that go against the other way of thinking.

So if you accept the scientific consensus that glaciers are melting, temperatures are warming and we're heading over the environmental cliff, you look to sectors that can deal with that reality.

Thus, those who think we can keep pumping methane and CO2 into the air without consequence would be wise to buy insurance stocks, especially those that insure against natural disasters. Companies like American International Group (AIG - Get Report) and Chubb (CB - Get Report) have to be putting more disasters into their models -- it wouldn't be prudent otherwise. If disasters don't occur, these companies are going to be rolling in cash.

Best of all, they're both bargains. AIG still sells at slightly less than 12 times its most recent earnings, Chubb at a little more than 12 times.

Retailers with global reach should have steady profits if global warming isn't real. So try some Wal-Mart (WMT - Get Report), even Target (TGT - Get Report), which should see both growth and international expansion.

If you don't think Florida is doomed by climate change, maybe you should consider homebuilders. Lennar (LEN - Get Report) is a homebuilder based in Miami, which will be completely under water if global warming proceeds as expected. You may also think that in this case there will be lots of extra money around, so how about a gambling stock like Las Vegas Sands (LVSC) -- Macau is right on the seacoast so it should be fine, right?

Scientists think airliners contribute as much as one-fifth of the Arctic's global warming, so no cool planet portfolio should be without companies like Delta (DAL - Get Report) that fly over it every day.

On the other hand, what if you accept the reality of global warming? How do you invest then?

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AIG $54.81 0.04%
CB $101.11 0.01%
DAL $43.26 -3.78%
LEN $51.85 0.08%
TGT $82.09 0.02%

Markets

DOW 17,698.18 -77.94 -0.44%
S&P 500 2,059.69 -8.20 -0.40%
NASDAQ 4,880.2280 -20.6570 -0.42%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs