The End Of Ordinary Commodity Cycles: ETFs To Play This Emerging Trend

ETF Database submits: Over the past few years, the number of ETFs tracking the alternative energy industry has soared; what was once just a few funds targeting broad equity and bond markets has now branched out into a diversified mix of ETFs offering exposure to almost every conceivable corner of the investable asset universe. One excellent example of this trend is the clean energy space, which is now the subject of dozens of exchange-traded products.

Yves here. I am sure there are parts of this interview which will irritate NC readers, but this is on the whole a lot sounder and more balanced than you will hear from a lot of people in the energy game. I wish he had spoken more about geothermal, though. I have friends in Poland who have a home with a geothermal well underneath it, and it is great technology. Cross posted from OilPrice

Last year saw a shift from a reliance on oil and coal to an exploration of untapped natural gas resources and renewable energy. Few will bet against this topsy-turvy, transitional energy state persisting through 2013 and beyond. For the coming year, fossil fuels will continue to dominate the energy market, but renewables will continue their slow and steady gains, experts say

Opponents of fossil fuels have long championed solar power and wind power as replacements. Unfortunately, there is no evidence that solar and wind can provide the cheap, plentiful, reliable energy that our standard of living requires. They have never come remotely close to competing economically on a free market. In fact, due to their low concentration and high intermittency, they have proven unable to provide substantial baseload power in any country, ever, even when exorbitantly subsidized.

London Major Boris Johnson has placed a great focus on green projects in the capital. The 2013 Low Carbon Prize offers the capital’s students the opportunity to win a share of £20,000 to turn their ideas into reality. This year, for the first time, 20 of the best runners up will be shortlisted for a chance to win a paid internship with leading industrial engineering firm Siemens, sponsors of the award.‬

Maarten Spek submits: The upswing in resource prices continues. From a fundamental perspective this is no surprise. As the US, Japan, and Europe pursue an unremittingly loose monetary policy, credit supply to the “real” economy is more or less stagnant. Therefore a lot of capital is available for speculation. In addition, growth rates (and the anticipated returns) in the emerging economic nations outpace those in the West, whereas the former consume relatively high quantities of commodities.