Next year's investment plan: What Obama's green energy economy might portend

Over the past few months, as election rhetoric heated up and the economy has cooled, one of Barack Obama's recurring themes has been that the secret to America's future will be the development of an alternative-energy economy. To a populace that has grown increasingly weary of the lackadaisical government approach to economic disaster, this has been particularly galvanizing, and was undoubtedly a major influence on the election. Now that Obama has won, however, the next question is how he will transform those exciting New Deal-esque words into concrete action.

John Podesta, co-chairman of the Obama/Biden transition team, may provide a useful insight into this question. In his day job, Podesta is president of the Center for American Progress (CAP), a liberal think tank that is based in Washington D.C. CAP has already drafted a green-energy stimulus plan; with several programs that are ready to go, it would create 2 million jobs, and would cost a relatively meager $50 billion. While there is no guarantee that CAP's plan will be adopted, given Podesta's proximity to the presidency, it seems likely that at least part of it will become reality within the next year. For a savvy investor, this could be a blueprint for industries that are, potentially, poised to explode with a massive influx of new funds.

Green Autos: Obama has made it very clear that he intends to directly tie any automotive bailout to the development of green technologies. CAP's plan calls for a 4% per year increase in fuel-efficiency standards, as well as investment in new battery technology for plug-in hybrids. With this in mind, it's worth seriously considering which automakers are best poised to go forth with more fuel-efficient models. Furthermore, programs like CAP's "Cash for Clunkers" could be a major boon for companies that process or deal in recycled metals.

Green Building: CAP has proposed a green-infrastructure fund for retrofitting existing public buildings to make them more efficient; furthermore, its "Weatherization Assistance Program" would help homeowners improve their energy consumption profiles. Combined with tax credits for companies that make energy conservation products (like insulation and double-pane windows), this promises a major boost to the construction and home-improvement industries. From 3M (NYSE: MMM) to the Home Depot (NYSE: HD), any company that produces or markets energy conservation materials could experience a serious bounce.

Large-Scale Transportation and Energy Infrastructure: From the plans for a "smart" electric grid to wind and solar farms to vast mass-transit projects, the CAP has called for massive investment in the kinds of large-scale public works programs that are potential game-changers. Alternative energy companies like Cleantech America and Coskata might benefit greatly, as might companies specializing in public transportation. Unfortunately, most rolling stock or bus companies are based overseas, like Kawasaki, or are private, but Bombardier is traded on the Toronto Stock Exchange, and Ford (NYSE: F) also makes buses.

A Caveat: All of this is highly speculative, of course, and a variety of things could easily undermine these suggestions. However, if a green energy economy is where America is headed (a path that seems quite likely), it's highly logical to consider which companies seem best poised to benefit!

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