Clean Energy : Evolve Your Porfolio, Secure Your Retirement

Clean energy isn't going away, and it has a place in most portfolios. I would caution, however, that this is a smaller cap sector and individual securities can produce wild swings in price.

Clean energy is not only volatile, but also tied to swings in oil. When oil prices fall so does the interest in alternative energy. This volatility in clean energy stocks can be a risky resource for profit taking. Clean energy ETF's, possessing the same properties as an index, are slightly less volatile and will be a wise long-term investment in anybody's portfolio.

The entire alternative energy industry is a creation of government intervention rather than meeting a market demand, which is there. Their fortunes will depend on politics more than anything else for years to come.

I prefer PowerShares Global Clean Energy (AMEX:PBD - News)now because of its international exposure. The portfolio weights U.S companies at 28%, Germany 16.9%, Spain 10.4%, China 7.2%, France 7.5% and Denmark 6.6%. It also includes names from Japan, Australia, Brazil and Ireland. The ETF returned 26% last year. But it lost 17% year to date. It sports the highest Relative Strength Rating, 78, in its category.

PowerShares WilderHill Clean Energy (AMEX:PBW -News), the largest by assets, also gained 4%. Like First Trust, its 50-day average has crossed below the 200-day. Last year's No. 2 performer blasted 60% in 2007. It plunged 25% year to date, but has vaulted 13% off its bottom.

Promising Solar Stocks:

AKNS AMAT CSIQ CSUN CTDC EVX FSLR GEX JASO LDK QCLN SPWR STP TSL