Written by: Aaron Katsman | October 8, 2008
Many reasons have been thrown around to the continued rout in global stocks. After all with 24/7 media, they need to have something to talk about. Bank failures, plugged up credit markets, as well as a general panic among investors are just some of the reasons given for the market slide. But what about the fact that Wall-Street may be on edge regarding a potential Obama presidency. Could it be that investors are worried that a Democratic president and Democratic controlled congress is a recipe for disaster?
Much has been made over the years about gridlock in Washington. Many of us believe that gridlock is good because nothing ends up getting done in Washington, which means that nothing can get screwed up. With a potential Democratic sweep, investors may be fretting about increased spending, increased taxes and increased intrusion into the lives of each and every one of us. After all the Obama policy of hope and change is innocent enough, but if it’s backed up by Nancy Pelosi et al. running with a majority in both houses, things could interesting.
Here is a chicken/egg one for you. Common wisdom has Obama surging ( I guess this is one surge he supports!) due to the current economic crisis. But could the market crash be a result of Obama’s poll surge, and the fact that investors are scared of a Democratic sweep?
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Aaron Katsman is Managing Editor of the Israel Opportunity Investor newsletter. He is lead portfolio manager for the Israel Growth Portfolio and Managing Director of America Israel Investment Associates, LLC. For more information, go to www.israelnewsletter.com or call 1-888-327-6179, or email aaron@profile-financial.com.
Written by: Aaron Katsman | August 28, 2008
With the Democratic National Convention in full swing, expect much attention focused on alternative energy, Cleantech and environmental issues. After all, House Speaker Pelosi has mentioned that her goal is to save the planet and Al Gore will show up and do his usual speech on how global warming will destroy the planet if we don’t do anything ASAP. I don’t want my cynicism to show through but have the DNC and Obama’s organizers taken any measures to ensure that this convention is environmentally friendly? How much energy is being used to run the event? Just asking.
Anyway, a great article out in the Jpost today about how Israel is on the way to being a world leader in Cleantech. While Shai Agassi’s electric car initiative has gained many headlines around the world, Israel is also very quietly making strong inroads, in solar and water technologies. The article focuses on how Israel is developing the technology for the purpose of letting larger nations do the implementation. Much like the current technological revolution, Israel has been behind many of the advances that have powered us forward. The view is that Cleantech will be Israel’s next boom industry as technologies will be developed that power a move away from crude oil towards alternative energy sources.
The article quotes Isaac Berzin, an expert in using algae to curb greenhouse gases: “Israel should be a world leader - creating the solutions the world is looking for. Investments are coming to Israel [as a result] and lots of jobs are created. Let’s say you develop a major solar technology, which is cost effective etc. What’s the demand for electricity in Israel? A small fraction of world demand. If your only output is Israel then you are in trouble. Hi-tech was great for Israel. Where were the markets? Out there, which is absolutely fine.”
It’s interesting that the one thing Israel lacks is natural resources. The one thing Israel has loads of is brainpower, ingenuity and entrepreneurship. Isn’t it ironic that Israel is using its’ main resource to try and level the economic playing field by developing technology that will greatly lessen the need for natural resources.
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Aaron Katsman is Managing Editor of the Israel Opportunity Investor newsletter. He is lead portfolio manager for the Israel Growth Portfolio and Managing Director of America Israel Investment Associates, LLC. For more information, go to www.israelnewsletter.com or call 1-888-327-6179, or email aaron@profile-financial.com.
