www.dailyreckoning.com/LP/CarOfTheFurture.html
Find out who will be the winner, from the newsletter rated number one for the last five years by the Hulbert Financial Digest. Dear Reader, The race is on to design the car of the future. Every player in the industry is scrambling for the prize, and the winner will dominate the world car market for decades. The three big contenders are the hydrogen fuel cell, the electric hybrid vehicle (like Prius), and the diesel. You're going to be surprised when I tell you the most likely winner. What's more, I've identified a "secret play" on the winning technology, ready for your portfolio right now. The hydrogen fuel cell gets the most hype Detroit put all its chips on fuel cell technology, and they've been telling us since the late 1990s that a breakthrough was just around the corner. In 1997 German-owned DaimlerChrysler actually predicted 100,000 fuel cell engines on the road by 2005. In 2001 General Motors projected about the same timeline. Even George Bush got into the act, declaring in his 2003 State of the Union message that "America can lead the world in developing clean, hydrogen-powered automobiles."
Enter Your Email Here We will not share your email address with anyone else, period. On top of that the fuel cell engine costs ten times as much as a conventional engine. Worse yet, there's also the problem of building a national network of fuel stations where you can fill the tank with hydrogen. Hydrogen isn't found in nature in a usable form and it's very expensive to produce. There's still hope that hydrogen will come through in the end, but the National Academy of Sciences believes the "hydrogen economy" is decades away. Meanwhile, electric hybrids roar ahead When Toyota announced a heavy investment in electric hybrids a few years back, Detroit snickered. To them it just seemed like a halfway solution on the way to the fuel cell car. I don't need to tell you that the electric-hybrid Prius is a sensation, and Detroit is now rushing to play catch-up. They'll come out with a number of hybrid models in the next few years, many of them using technology licensed from Toyota. What's more, the electric hybrid is not just an underpowered small car. Toyota now offers a high-end SUV hybrid with better acceleration than the standard model! The Number One Financial Newsletter in the United States As Rated by the Hulbert Financial Digest Justice Litle is a world traveler who studied philosophy at Oxford, at Pulacki University in the Czech Republic, and at Macquarie University in Australia. Then came an experience that changed his life: a book called Investment Biker by legendary money manager Jim Rogers. Justice Litle was so hooked on the excitement and challenge of big league investing, he jumped into a new career and never looked back. "The markets are like a three-dimensional chess game that was just too intriguing to pass up," he says. Now he's not only a commodities expert himself, he trains commodities traders and contributes to textbooks on the subject. He also edits a newsletter for average Joes called Outstanding Investments. It's gained more in the past five years than any other newsletter tracked by the prestigious Hulbert Financial Digest. Justice has worked with hedge funds and traded equities for a private partnership. Sophisticated investors can tell you all about his articles in Futures Magazine, and you may have seen him quoted in the Wall Street Journal, or benefited from his market wisdom in Reuters and Dow Jones newswires. There's a third alternative, a "sleeper" technology that's going to surprise everyone. My name is Justice Litle, and I'm the editor of Outstanding Investments, a monthly newsletter plus weekly email updates. My opinion on the great car race is worth a few minutes of your time, because my newsletter had the best track record of any in the country during the last five years. You can check it out at CBS Newswatch in its independent rating service, the Hulbert Financial Digest. What's more, we did it all with stocks, not options, and we traded very little. So let me tell you how you could stand to make five or ten times your money on the great car race. The Prius has problems First off, the gas mileage on the Prius is not all it's cracked up to be. What happened is that the EPA tests cars and trucks under ideal conditions on a flat surface. In the real world, it looks like Prius's mileage is not so hot. Also, most of the hybrid's big mileage gains occur in stop-and-start city traffic. On an open road, the conventional engine actually gets better gas mileage. When you look at the Prius's true mileage, there are plenty of conventional vehicles that do as well or better. Add in the high extra cost of the hybrid engine, and some say you have to drive the car a hundred thousand miles to recoup the extra $9,000 or so you pay for the fancy technology. The humble old diesel engine --the third and final competitor for Car of the Future. You can hear a diesel truck from a mile away, see the soot from halfway down the block, and smell the exhaust as it rolls by. Except - surprise - those diesels you hear and smell are antiques. Thanks to new technology, diesels aren't so dirty anymore and the gas mileage is better than ever! Here's what happened: Europeans have to pay heavy gasoline taxes and they worry about global warming, so they invested in the diesel engine as a stopgap, just in case the hydrogen car hit a snag. Now the stopgap looks like the winner in the great auto race. You see, diesel gets about 30 percent more miles to the gallon than gasoline, and those savings are real, in any kind of driving conditions. What's more, people who worry about global warming prefer diesel because it emits up to 20 percent less carbon dioxide. Diesels have a huge, surprise advantage Diesels now rival traditional gasoline engines for quiet, and European refineries have removed most of the pollutants from the fuel. The engines cost more, but the gas savings almost make up the difference. I'll tell you a sleeper stock - not a car company - that's the best way to play the diesel revolution. But meanwhile there's an even better way to invest than the hardware under the hood. You don't need crude oil to make diesel fuel You can make it from coal, plant matter, or even cooking oil. But if diesel wins the auto race, coal will be the biggest thing since folks traded in their horses for cars. Later in this report, I'll tell you some really shocking news about the outlook for oil prices. My readers have already profited, with one pick up 496 percent as this is written, and two others up 140 percent and 430 percent. We reaped those gains because, whatever the future holds, the oil crisis right now is bad enough. In India they make fuel from cow dung Every year and indeed every month the world will grow more desperate for the alternative fuels and technologies I talk about in the next few pages. They're so desperate for alternatives they recently promoted cow dung as an important energy source. The Chinese would have to buy 650 million vehicles to reach American levels of car ownership! But a fraction of that figure will create an oil and pollution crisis big enough to finish us off. In the vast markets of India and China, a vehicle that runs without crude oil will be irresistible. A hybrid diesel engine is the next step A combination of hybrid and diesel technology will take the fuel savings up a notch. An MIT study predicts the diesel hybrid could outperform a hydrogen fuel cell engine on both gasoline mileage and carbon emissions - within ten years. In other words, the hydrogen fuel cell car may never get to market. It's dead in the cradle thanks to breakthroughs elsewhere. There is indeed a catch to all this, but the catch is where you'll find the profit opportunity. The obvious play is to buy the big automakers like Toyota that own the leading hybrid or diesel technologies. The auto industry is on its way to becoming a replay of the airline industry. The competition is already cutthroat, with razor-thin margins. Now we're going to see General Motors and Ford file for bankruptcy. Once they're operating under Chapter Eleven, like the airlines, ...
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