Energy Fund Chief: Forget Corn -- Go Solar
Watch the sunrise for 10 years -- and you just might make a fortune. So says Tim Guinness, manager of the Guinness Atkinson Global Energy Fund -- and as of a year ago, manager of the firm's new Alternative Energy Fund.
Speaking from London, the fund manager said that regardless of Iran's moves, he sees "conventional" fuels doubling in the next three years -- but having "poor" prospects thereafter. Instead, he prefers wind and solar power, the latter a particularly "exciting" long-term play. He told CNBC's Mark Haines that solar currently accounts for less than 0.1% of the world's energy; hold on to those sun-fuel companies, and you can "potentially make five, 10 times your money" over the next decade.
And while the U.S. corn crop was the largest since 1944, Guinness notes that the publicly-traded ethanol space is "quite hard" to play, cur to commodity risk.
Guinness told "Squawk on the Street" viewers that he sees oil bouncing between $50 and $70 for the next three years -- barring a giant "crisis" such as the closure of the Straits of Hormuz. If that waterway linking the Persian Gulf with the Indian Ocean were to be obstructed, he says oil would soar above $100 -- but he calls that an "extremely unlikely scenario."