View the full GOOG chart at Wikinvest

In May Google announced that it made an industrial size investment in industrial scale wind power. The search engine behemoth put up over $38 million toward a 169.5 megawatt wind farm in North Dakota, being developed by Florida based NextEra Energy, Inc. (FPL). It truly is an exciting project, using advanced blade technology and dynamic control systems. 

Why does Google care so much about wind power? Probably because it just does, as shown by its efforts aimed at conserving energy as a company, and pushing for better clean energy policies for the country. Just as important, though, Google is essentially in the electricity consumption business. The company is very secretive with their actual energy usage, but even so, their myriad of servers and data centers require lots of reliable electricity. The Times Onlineestimated that a single Google search generates between 1 and 10 grams of carbon pollution (though Google disputes this). Given this potentially massive carbon footprint, energy policies have a direct affect on Google’s assets and bottom line, be it monetary or environmental.

The good news for Roen Financial Reportsubscribers is that NextEra Energy (formally FPL Group) was recommended for inclusion in the Paradigm Portfolio back in May of 2009. FPL was profiled in the November 2009 issue of the Roen Financial Report. I agree with Google that this is a good company to invest in.

The June 2010 issue of the Roen Financial Report is out and available to subscribers. The feature article appraises whether the economic recovery is real or not, and how that may affect your investment decisions. Also, see how portfolios published in the newsletter fared much better than the market as a whole. Then learn about how one of the recommended companies, innovative waste-to-energy company Covanta Holding Corp (CVA), combines pollution reduction solutions and a strong balance sheet.

Click below for a free sample of the Roen Financial Report, or click here to subscribe.

With the stock market currently faltering, it is instructive to look at the underlying economic data. The chart below clearly confirms that many sectors of the economy are showing a real recovery. The shaded area shows the start of the recession in December 2007, and the ensuing fall in profits, manufacturing and the like. Since then all these areas have recovered handsomely off of low readings in 2008 and 2009. To be sure, there are still problems to contend with, such as housing in the U.S. and the financial crisis in Europe. So while the road MAY be rocky ahead, the data shows a recovery well underway.

Source: U.S. Department of Commerce Bureau of Economic Analysis. Data as of 4/30/2010. All figures in $Billions.

The recent uproar in the stock market has caused volatility to return to the forefront. Since the shocking drop on May 6 2010, which featured a 9.6% fluctuation from the highest point to the lowest point of 1065.75 for the S&P 500, the market has been bouncing up and down without any clear indication as to where and when it will settle. This volatility, shown in the chart below, is nowhere near the extremes observed when the credit crisis began at the end of 2008. However, the current volatility is back up to levels seen during other tight economic times.

As a result of the tech bubble in the late 1990’s, stocks became tremendously overvalued for an extended period, and then came down in price once that bubble began to burst. The volatility that ensued lasted for several years as economic uncertainty made it very difficult for investors to pin down where fair market value should be. A similar event happened after the S&L crisis of the early 1990’s, but to a lesser extent. Considering the extreme market moves of the past few years, it’s not surprising to see a return to volatility, which is likely to remain a characteristic of the market for some time to come.

This makes it even more important to have a disciplined investment plan with a long-term investment horizon, to help weather capricious market moves.

The US alone produces about a quarter billion tons of garbage a year. Transforming that waste and turning it into usable energy is the principal business of Covanta, a US based company with projects here and abroad. The combination of reducing landfill costs and impacts, while offsetting carbon, is helping this company grow.

The Roen Financial Report will profile Covanta Holding Corp (CVA) in the June issue, highlighting the pluses and potential pitfalls of this innovative company.

The June issue will also introduce a brand new company to the paradigm portfolio.  Online subscribers will have the most immediate access to upcoming issues.