Green energy stocks to remain on fire throughout 2008

Green energy and eco-friendliness were some top themes on consumer and business minds in 2007, and this will most likely continue into 2008 and in the coming years as well. Given the huge increase in fuel prices in the last 36 months, it's no wonder that investors have pushed up the shares of these companies.

Alternative and green energies will, in my opinion, be an investment area that should demand attention this year if you are ready to expose your portfolio to what is not a trend at all, but what is becoming the future. There's a reason why General Motors Corp. (NYSE: GM) and Toyota Motor Co. (NYSE: TM), for example, continue making statements about vehicles that run on anything but gasoline.

Although 2007 saw great returns with renewable energy stocks, 2008 holds the same promise. Looking for areas in which to research and invest? Start by focusing in on companies within the WilderHill clean energy index (which contains 48 renewable energy stocks). The index was up 58% in 2007 after single-digit gains in 2005 and 2006. While solar power stocks already saw a huge increase in 2007 (some with 100% returns), that arena may take more careful scrutiny for 2008 if you're looking for market-leading stock performance. At the same time, wind energy stocks are poised for larger returns in 2008 in the game to lead market returns for all renewable energy stock categories.