An LED Light At The End Of The Tunnel
Looking for a solid investment in shaky economic times? Two words: incandescent bulbs!
According to a September 27 announcement by the National Electrical Manufacturers Association,
"...incandescent lamps increased for the second consecutive quarter in Q2 2011, showing an
improvement of 5.6 percent over the same period last year. Conversely, the sales index for compact
fluorescent lamps (CFLs) declined for the fifth consecutive quarter."
I am not surprised at the data after visiting my local Home Depot store. In the light bulb aisle,
I saw a significant amount of shelf space dedicated to large multi-packs of cheap 100-watt
incandescent bulbs. The packaging implored shoppers to "Stock Up Today!" Apparently, word is out that
under the Energy Independence and Security Act of 2007 incandescent bulbs will start disappearing
from store shelves beginning in January.
Yep, we love our cheap, energy-wasting incandescents and bathe in their warm glow. They
are a guilty pleasure as comforting as creamy chocolate. That's probably why the recent Better Use of Light Bulbs Act (H.R. 2417) almost passed the US House of Representatives. The bill would have repealed the scheduled US bulb ban. The House voted 233-193 - a solid majority - in favor of the repeal. Unfortunately for supporters, the bill needed approval by two-thirds of House members.
Then again... maybe the bill's failure is a good thing. Back to my thought about investing in shaky economic times. The large 100-watt incandescent bulb packs at Home Depot were made by Philips, the same leading-edge electronics manufacturer that's trying to convince consumers to pony up big dollars for new-fangled light emitting diode (LED) lamps. Okay, LEDs are energy-efficient and last for years,
but we're talking typically $15 to $25 a bulb. Ouch!
As with any corporation these days, Philips needs to make money where it can, and right now incandescents are hot. (Pardon the pun.) Given that Philips is headquartered in the Netherlands, it also has witnessed first hand the incandescent bulb hoarding phenomenon that took place in European Union countries before 60-watt bulbs were pulled from store shelves on September 1.
The good news is that you can cash in on the incandescent bulb bonanza, too. Simply buy all the US
incandescents you can while they are available and cheap. Sit on your investment until 2014 - when the US bulb phase out is completed - then start auctioning off your precious supply on E-Bay at 5 times what
you paid.
With the profit you will make maybe you could afford to buy a few LEDs!
I'm Bruce Popka, and I'm a little green around the edges.
You can email Bruce with your comments at bruce@raymond.com.
