Saturday, February 10, 2007

Investment portfolio for $150 per month?

-According to an article I read on Japan INC, Merrill Lynch and Fidelity both offer portfolio packages for $150 usd per month. It stated that it gives the owner a more flexible/diverse style of investing and since it adds up as each month goes by, the portfolio will grow to a pretty decent-sized investment.

I'll have to do some research into this to find out more about it, but if this is true, it definitely sounds like something that almost everyone should be doing if they're not investing already.

-Global warming is now on the forefront of news, which is a good thing since it's better late than never. What I didn't realize before was what impact the Kyoto Protocol has on major corporations. Carbon emissions trading has become a major business in of itself and the concept is quite intriguing. Putting it simply, all companies acting in the protocol have set limits as to how much carbon they can emit from their factories. Anything over that limit, and the companies involved are penalized by the government. Here's where the business aspect comes in. Companies like Mitsubishi Corp. and Natsource (partner company) specialize in carbon emission trading. What they do is, when companies realize that they are over the limit for CO2, they buy rights to produce extra tonnage from carbon emission trading companies. Eventually, if the companies can get the emission level down to an acceptable level, they often find themselves with extra CO2 credits leftover. They can then sell the extra credit for revenue.

While this method is intriguing from a business standpoint, one has to wonder whether or not this is an effective way to reduce global warming. I guess time will tell, but it's nice to know that something is being done.

Comments:
Wouldn't it mean that what the company isn't emitting, some other company would be emitting, so it pretty much equals out?
 
That's probably also true, though I imagine (and sincerely hope) that all companies eventually bring themselves to make the changes permanent, rather than say "ok, let's start burning coal again!" after having reached their goal.
 
Wow, this post seems to be about two subjects! Ok, I have a Schwab account and I know that they will lower their minimum account size if you automatically deposit money every month, a great way to get disciplined.

My father actually works in the electrical generation and distribution business. Though his company seems to own a nuclear plant, they buy and process coal as well. The whole idea of credits is that they set limits on total polution and generate money to fund research. The government initially sells poluting credits, so they control how many are in the population. They tend to sell a fair amount to each company. Companies that don't polute can resell their credits, thus profiting more from being clean. Companies that polute more have to buy more credits from their competitors, often at a severe markup. The idea is that the government can use the initial sale of credits to fund environmental research and control total polution, companies that polute less make more money, and companies that polute more make less money. Sounds like a positive step to me.
 
Great, I didn't know that Schwab had that option. Will definitely have to look into that one!
 
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