A new report forecasts accelerating growth of up to 52% CAGR for commercial nanotechnology.

A new book by former CIBC World Markets chief economist and chief strategist Jeff Rubin calls for $200 per barrel oil on a day when prices broke through $60 for the first time since January, marking a 40% rise from February lows.

Top 100 Stocks to choose in Nano, Cleantech, Energy, Water and Special Situations now online at financialprofilesmedia.com for members. Sign up today.

Oil Stronger, Improves Clean Energy Outlook

Vestas completes $1.08 Billion in equity offering. China to lead world wind market development.

Recent trading in oil futures illustrates how markets tend to go to excess. Only weeks ago, futures traders had oil pegged to drop to $25/bbl, a figure that would have amounted to an 83% price decline in a matter of months.

Please, get the Zamboni out a clear the ice. The fear out there is so thick, who can skate through it?

And while the experts in the futures markets basically had the world coming to an end, the fact remained that economic forces already had gone to work to begin limiting supply.

$45/bbl oil means a great deal of exploration and development in both conventional and non-conventional (read Alberta Tar Sands) only go forward contingent on higher priced oil.

Moreover, the economics of new energy deals in Solar, Biofuels, etc. change dramatically with oil prices at current levels. There are really two major impacts of current oil prices for investors. First, low energy prices will keep certain future supply off the market. So when world energy demand accelerates, watch out.

Second, at  current levels translated into gasoline prices, "cheap oil" gives a massive tax break to consumers. Just how you quantify is up to you, but consider a family paying $800/month for gas last year, now paying half of that now. It's equivalent to a $400 per month tax cut, nearly$5,000 per year.

Combined with the huge monetary, fiscal and program stimulus from major governments, consumers around the world are goimng to have a lot more money in the near future.

And that, in turn, puts upward pressure on energy prices. Kinda odd that the folks in the futures market didn't figure that one out sooner, isn't it?

The first trading day of 2009 saw markets rally. In Hong Kong, the Hang Seng index rose 4.55% to end the session at 15,042.81, up around 25% from lows in late November of near 11,000.

The Dow climbed nearly 3% and broke the 9,000 level. In Europe, the FTSE and the DAX rose by approximately the same amount, as did Canada's resource-heavy TSX. The Russell 2000 Index of Small Cap Stocks climbed 1.28% to finish the day above 500 points, a new recovery high.

I continue to see the past five weeks' trading as a strong sign that smart money has already begun to accumulate equities in advance of a coming recovery. While I expect a steady stream of bad news, I see this period as a buying opportunity in stocks the likes of which we may not see again for decades.

Keep your eyes off the headlines and look at the markets.

Blake

Well, it's 2009 and we're all still here.

In the past month, we've seen markets actually move higher, despite the horrific headlines and the carnage of trailing performance reports.

I expect that we'll see lots of bad news for at least the first six months of 2009, but remember, the stock markets discount the future, not the past. So if valuations in markets reflect reality 18 months in advance, then we may well see returns for smart money, early movers this year.

I like this phase of the market because rampant fear will keep the sheep in the barn, meaning that we have time to vet new deals and buy selectively.

When you look at the amount of cash now on the sidelines, as well as the tidal wave of monetary stimulus forming up as governments around the world announce massive programs, the potential for a strong Bull market already exists.

So let the bad headlines play large. I'll let the markets do the real talking.

Check out my latest podcast on this subject here:

Happy New Year, Blake