by Ryan Weber

Created on: September 13, 2008   Last Updated: December 01, 2008

The first rule in investing is that even in the most dire economic circumstances, the savvy investor stands to gain or at least outperform the market. In order to have good foresight in the coming crisis of global warming, one must understand the effects of global warming on the environment and the economy. Global warming will not happen overnight. Many scientists predict the north pole ice will melt away completely within five years. This will result in rising sea-levels, the opening of new sea-routes and oil reserves previously covered in ice. Most of the Gulf and Southeast region will be threatened by rising oceans and hurricanes with increasing power and frequency. Desert regions will continue to grow, threatening global food supplies. The key to investing is recognizing what industries are poised for growth in this situation and seeking out the player (company) which is best leveraged to thrive under the circumstances.

There will be tremendous determination as always to maintain a reliable energy supply. Energy companies that survive global warming will have quickly assessed the situation and modified their supply sources. (BP), is on the forefront already, investing heavily in renewable energies. They are currently working on wind-farms in the US and Asia. They are also one of the leading solar manufacturers in the world. When the Gulf region gets rough, BP will be the best poised to corner the energy market. It is worth noting that BP's solar business has been profitable since 2004. As energy companies develop sustainable energy they will be able to produce energy much more cheaply than the traditional method of constantly searching for increasingly expensive oil reserves.

In the auto industry, many people will shift to hybrid, electric or alternative fuel cars as a means to cut back on fuel costs. Toyota (TM), is currently the leader in hybrid technology with the wildly popular Prius. This car has the highest mileage of any car currently on the market. The (GM) subsidiary, Chevrolet is rolling out a new, fuel-effiecient car, the Volt in 2010, which can travel 40 miles on a single charge. Once the charge runs out, the engine switches to gas power. They have also launched a test fleet of fuel-cell cars, which run on water and travel up to 150 miles on one fill-up. Currently, they offer eight vehicles that get 30 MPG or better. Look for other auto-manufacturers to announce similar technology in the coming years.

General Electric (GE) has long been a favorite

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