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
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

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) and Chubb (CB) 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), even Target (TGT), 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) 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) that fly over it every day.

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

Stock quotes in this article: AIG, CB, WMT, TGT, LEN, LVSC, DAL, FSLR, MON, AWK, KO, PEP, CCE, CAT, TEX, JOYG, HD, LOW, IBM, GE, GOOG 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs