As I have told you before, I am an avid fan of physics, especially quantum physics.  The reason I enjoy the science so much is that it represents the inquisitive nature of humans, not to mention the empirical nature of the physical universe itself.  In the case of quantum physics, the representation is actually beyond the physical universe …  “Whoa, boy!  Slow down …”   I can get carried away.  Anyway …  The point I am going to make relates to one of the fundamental principles of physics – everything  seeks balance.  In my little world of this column, I consider it my job to provide balance …

Once again, it would appear that world is falling apart, and, for once, the breathless media is actually reporting with a fair sense of peril.  The events in the Middle East (and elsewhere around the globe) are serious and consequential, and no one has any idea how the pieces will come back together when the multiple revolutions are over.  Thus, chaos is a fair description of what is happening from Wisconsin to Tripoli to Beijing.  “Chaos,” a magical word in the world of physics, represents the state opposite of balance.  Consequently, when things are out of balance, chaos reigns.  To get back to balance, transformation has to occur, and this is exactly where the world finds itself today – in transformation, trying to get back to balance.

For too long now (centuries in fact), economics, politics, law, goods, services, and money have favored those with power and the ability to acquire.  Apparently, folks around the globe are sick of this imbalance; they are sick of tyranny and the lack of an ability to acquire, and so they stand up and throw caution to the wind in order to find balance.  The practical effect of this is disorder, and disorder creates fear and, for the trader/investor, this means a chaotic market.  One outcome of this chaotic market is the rapidly rising price of oil, which is, itself, a huge catalyst for change. 

Oil has long been a dominant symbol of the imbalance of power in the world.  Those who have it have not shared the wealth derived from it, and they have used it to bully nations far more powerful. Consequently, the seed of anger is sprouting and change is coming.  Political change, true, but more importantly, a transformation in consciousness.  In this is major opportunity.  Make no mistake, the time of oil is passing, and the transition will happen sooner than the powers that be would like.  The excerpts below are just a taste of the opportunity coming, and they are symbolic of the transformation from imbalance (chaos) back to balance (stability).    

The Dow Chemical Company (NYSE: DOW) unveiled its line of DOW™ POWERHOUSE™ Solar Shingle, revolutionary photovoltaic solar panels in the form of solar shingles that can be integrated into rooftops with standard asphalt shingle materials … The solar shingle systems will be widely available in 2011, putting the power of solar electricity generation directly and conveniently in the hands of homeowners.

A startup called Solar Junction says its pilot manufacturing plant is producing solar cells units that are more efficient than the best ones on the market today.  The advance, based on new semiconductor materials that the company has developed, make a type of solar power system called concentrated photovoltaics a far more attractive way to generate electricity from the sun.

Trade in the day – Invest in your life

Trader Ed