Don't be fooled by this company's name, renewable energy is a global industry and even small foreign companies like A-Power are creating jobs for Americans.  A-Power's new plant in the U.S will employ over 1,000 workers, not to mention those who will be hired to engineer and build the factory, and those who will eventually install and service turbines on U.S. soil.

With the official rate of unemployment at 10.2% and the broader U-6 rate at 17.5%, President Obama is focused on real job creation going into 2010.  But the old rules from the last three decades of a consumer driven economy don't apply now – we are in an economy of slow growth that will only recover when value is actually created, not just consumed.

And several industries that have been reliable job creators – the auto, financial, and residential construction industries to name just a few – are unlikely to grow at a rate that will absorb the hundreds of thousands of unemployed...

In fact, I've recently put together a special report on three companies that will benefit from a renewed focus on alternative energy including wind, solar, and landfill methane.  You can read my Special Report: Alternative Energy Investing: 3 Top Stocks Set for Profits when you sign up for a no risk trial to SmallCapInvestor PRO. 

Renewable energy infrastructure is coming back into the spotlight 2010 for a few important reasons:

1) Job creation that the economy desperately needs

2) Reduction of pollution required to combat global warming

3) Need for independent, home grown sources of energy

All of these will require a range of energy producing solutions.   Tomorrow I'll write about job creation – today it's all about wind power.

There is another sector that has the backing of the government, but it's not a bailout.  The sector is renewable energy infrastructure, and it is critical to the future health of our country.  Electricity has been delivered by brute force over outdated transmission lines for the past century.  However, in the not so distant future, a smart grid that can adjust power output and rates charged based on supply and demand will become a reality.

The rollout of a smart grid will make renewable energy sources much more viable.  Currently, energy from sources such as wind and solar is not economical to store and transport.  But that's where the smart grid comes in, and I believe in the coming years companies that build it will be great investments - similar to those that built the railroads, highways, telephone lines, and internet infrastructure in previous decades...

So if you and your friends don’t have a job you should go for a run, eat some fish, relax - take a nap and appreciate that you will enjoy a longer life of not working.

Of course the research has its skeptics - like everything - but I’m not moderating a debate today (if you are interested, you can read more about the evidence in Fortune Magazine by clicking HERE).

I’m looking to find profitable investment opportunities to capitalize on the research.  And today that means looking at healthy living stocks.

After deciding which stocks look good, I decide what I’m willing to pay.  Then buy up shares when the window of opportunity is open.  The next step is to sit back and let Wall Street (and your neighbor) ‘discover’ these unknown stocks, and allow their buying to propel the share prices higher.

China Green Agriculture (AMEX: CGA) is one such example.  I first recommended this fertilizer stock in June of this year in my Special Report Going for Growth – 3 Top Chinese Stocks to Buy Now. This report is available to SmallCapInvestor PRO members.

China Green Agriculture develops and distributes high yielding, natural organic fertilizers in China – a market that is facing shrinking arable land, a growing population, and ongoing consumer food safety concerns.  The company has government support, and is expanding capacity and margins as it increases production of highly profitable concentrated fertilizers.    

As the company’s CEO recently said, “Our goal is to continue to introduce new high margin products to the market quickly, providing one of the most assorted product mixes of compound fertilizers available in China.”  This company is keeping it simple – speed to market, high margins, and a selection of products.  Everyone wins - consumers, investors, and the environment...

The same case can be made for water. And the companies that treat water to make it safe to drink, and safe to dispose of, are compelling investments. In fact, depending upon your perspective, the case for water could even be stronger. While I could get by for a while without oil, I haven't got a shot without water.

Water demand is growing for use in agriculture, industry, cooking, energy production - the list goes on and on. And we use a lot of it. While you may only drink half a gallon a day, you used around 25 gallons during your last shower. And it takes 1,857 gallons to produce a pound of beef.   

In my world, this growing demand for water means looking for small-cap companies that can alleviate the problem, and investing in the best ones.  Just yesterday, I recommended a Chinese water stock to subscribers of my SmallCapInvestor PRO advisory service. That stock is poised to increase by more than 50% on growing demand for its suite of water treatment products.

If you were to read Samuel Coleridge's entire poem, you would follow the tale of a mariner who has returned from a long adventure at sea. Despite the abundance of water, the ship's crew has no method by which to remove the salt and make the water potable.

Thankfully, technology has advanced considerably in the last 210 years. Today, the desalination process removes solids like salt and other contaminants from seawater and makes it safe to drink. It is a burgeoning industry of $30 billion today, and according to FORTUNE Magazine, it will double by 2016...

That's what I've been doing in my SmallCapInvestor PRO portfolio. So far this year, nine of eleven positions have been closed with a gain, one greater then 140%.

In small-caps, the drop is typically greater than in large-caps, and the recent market action has born this out once again. Last week the Russell shed 2.7% while the S&P 500 only lost 0.7%. But the reverse is also true, and history has shown that small-caps consistently outperform large caps on the upside. Investors who purchased the Russell 2000 small-cap index ten years ago would have enjoyed returns around 40%, versus a 20% loss for investors in the S%P 500.

I often look to overseas markets like China and India in search of attractive small-cap investments. And why not? For its part, China just reported 8.9% Thrid Quarter growth while the U.S. has stalled. India is growing GDP growth at around 6%. 

This morning, many Asian indices were trading higher after South Korea reported excellent quarterly GDP growth. We also heard encouraging news from India's Tata Motors (NYSE:TTM). The nation's largest auto maker doubled profits on increasing sales, and the stock is responding with a 6% gain. 

Today we heard online retailer Amazon's (Nasdaq:AMZN) results. The aptly named company crushed analyst EPS estimates which had called for $0.33 per share. Amazon beat by 36%, delivering $0.45 a share on $5.04 billion in revenue. What's more, the company raised Q4 guidance. Shares are surging 25%.

Talk about exploring opportunities for trade and commerce. It would have been nearly impossible for the average citizen in 1841 to invest in the opportunities Herndon found in the South American Jungle. But there are plenty of ways for investors to benefit from the trends in e-commerce. And small-caps are the way to do it.

Small-cap companies are overlooked and underappreciated by many investors because it's not economical for analysts to follow them. Until the companies start to break-out, and then they are all the rage. Find them when they are taking-off, and you can ride them for handsome gains...

The rise in oil prices, and many other commodities prices for that matter, has many wondering if the market is too bullish given that economic growth is uncertain. Plus, much of the rise in oil has come on the back of a falling dollar.

You’ve probably heard that renewably energy sources like wind and solar will reduce the demand for oil. Government programs that incentivize their use have worked in places like Brazil. But overall, they haven’t slowed the relentless rise of oil prices.

While these factors might make the rise in oil prices seem unsustainable, it’s more likely that normal supply and demand relationships will resume when the economy gets back on track. In other words, higher prices are coming. Peak oil (the point when the world reaches a maximum rate of petroleum extraction, after which production will always be declining) adds an interesting dimension as well. Some experts think we’re past this point, some think it won’t arrive until 2020...