E HH Why Water Is One Of 2016’s Best Sectors

At the top of the shopping list to participate here should be the Claymore S&P Global Water Index ETF (CGW). You can get it for a bargain now, as it has just fallen by more than 10% since the stock market melt down began.

You can also visit the PowerShares Water Resource Portfolio (PHO), the First Trust ISE Water Index Fund (FIW), or the individual stocks Veolia Environment (VE), Tetra-Tech (TTEK), and Pentair (PNR).

Who has the world's greatest per capita water resources? Siberia, which could become a major exporter of H2O to China in the decades to come.

There is a potential happy ending to this story. If solar energy cost improvements continue their Moore’s law like descent, energy will effectively become free by the 2030’s.

If you think this is pie-in-the-sky stuff, know this. On peak days alternatives are now accounting for 56% of California power grid, largely through solar.

That will dramatically drop the cost of desalination. Indeed, major efforts along these lines are already underway by utilities in the Middle East.

San Diego’s Poseidon project only recently came on line, and is producing 50 million gallons of fresh water a day. The goal is for the Carlsbad facility to obtain 8% of the county’s water from the ocean by 2020.

And the last time I checked, we had plenty of seawater.

CGW

PHO

FIW

 

Waterfall

The US is Still the Saudi Arabia of Fresh Water

Water Processing Facilities

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Trinity Sinclair 4 years ago Member's comment

This is extremely insightful and an excellent investment idea that I never considered.