This Day On The Street
Continue to site
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

If Global-Warming Fears Die, These Companies Win

I'm skeptical about most things, and it serves me well in the world of finance. I look at company filings, press releases and analysts with a critical eye, and especially at stocks that have gained more enthusiasm than substance.

Being skeptical is a exceptionally smart thing as long as you don't go "over the edge". It's not easy to be skeptical when you listen to NPR, and the speakers are claiming a consensus of scientists and the IPCC claims there is over a 90% confidence level that humans are more or less destroying the atmosphere.

Some skeptics would make a better argument if they just didn't write or say anything, but allow me to take a step back to when this issue actually caught my attention.

[Read: <a target="blank" data-add-tracking="true" href="http://www.thestreet.com/story/12045151/1/exclusive-twitter-picks-nyse-for-15b-ipo.html?kval=dontmiss"><em>Exclusive: Twitter Picks NYSE for $1.5B IPO</em></a>]
Like many people I have talked to, the global warming issue wasn't something I gave a lot of thought to until I watched the video "An Inconvenient Truth", but unlike many people, I saw through the obvious emotional exploitation of using Al Gore's son and sister. But hey, it's not science class, and I know people make decisions based on emotion and justify them with logic, not the other way around, so I let that go.

What did bother me were claims that 10 of the last 14 years were the hottest in history. Actually he said something closer to "...hottest in recorded history," and it was at that point I knew everything stated became suspect.

During January, the same area I plow snow off my driveway was a tropical swamp in times past. Because the area I live in was once much warmer than now, we have two problems in the video.

The first is obvious, that starting and or ending points are cherry picked to make the global warming case, and if not, the sample size is too small. We see the same in finance, especially brochures for mutual funds touting their five-year performances and claims of stability.

Often the dates used to advertise impressive results/stability are not the starting dates, but rather dates that give the impression the fund has a much stronger history than if they use the fund's starting date. Using ice-core samples, we can go back a long time, so why only use a relatively short recent time frame? Remember this image? It's received a lot of press.
2 of 4

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
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
WLT $0.00 0.00%
ACI $1.80 -0.11%
ANR $0.03 -8.57%
BTU $1.10 0.46%
DUK $74.23 -0.97%

Markets

Chart of I:DJI
DOW 17,595.56 -2.64 -0.02%
S&P 500 2,101.66 +3.62 0.17%
NASDAQ 5,122.2620 +6.88 0.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs