Investors are buzzing about renewable energy right now. Shares of companies that trade in things like solar panels, wind turbines, and hydroelectric technology are surging after news from Washington DC that Congress has forwarded a bill that will earmark $300 billion for investment in the renewable energy sector.
This is a great opportunity to invest in companies that focus on green energy and to pivot your portfolio to perform well over a long period of time. Here are some investing moves to keep in mind as the world transitions to a greener tomorrow.
Some investors are leaving traditional energy behind altogether and moving into renewables instead. Coal, natural gas, and petroleum are evergreen investments for most major hedge funds, but they might lose ground to solar, wind, and hydroelectric energy in the long run.
As the world looks to move beyond fossil fuels and invest in greener technology, savvy investors might want to get ahead of the curve by investing in these technologies now – while they’re at what might be their cheapest price, too.
If you’re currently heavily invested in gasoline companies, traditional automotive manufacturers, or coal-based power plants, you might consider pivoting to greener alternatives as their stock rises. It could be a prudent investment for your future.
Climate activists have been encouraging Wall Street investors to pivot to supporting renewable energy companies over fossil fuels for decades. Why should anyone start paying attention to them now?
Well, $300 billion in government funds sinking into the renewable energy sector is one big reason.
The average American strongly agrees with the push to move toward renewable energy. People are more concerned about climate change now than ever before, meaning that investors would be wise to ride this wave of public sentiment. There’s no reason to lose money on aging fossil fuel technology.
It’s always worth noting that there’s no such thing as a sure investment. Even if the government subsidizes an industry and public sentiment props it up, it’s possible that investors could still lose money on long-shot bids.
However, that doesn’t change the fact that many large investment funds are currently bullish about renewable energy. Even if it’s not the most immediately lucrative investment, it’s an investment in the future of the planet. That reasoning alone is strong enough for some investors to stake their savings on solar and wind-based energy companies.