So green investments are not at all without risk, everyone knows. But they are not as safe as they were before nuclear disaster to the Japan. With much debate surrounding nuclear future, it is probably a good time to start thinking about how to play the wave of green energy.
When you think about green investments, it is important to think about what is behind each of them.
1603 Tax - relief that we talked about earlier on this blog is a great benefit for green energy companies. Since investing in things like energy solar, etc is provided to 25% by the US Treasury, those in the market for eco-friendly energy sources have much reason to start buying.
Switch from nuclear energy - it is too early to tell, but it is certain that at least some countries go to rethink nuclear energy. In the United States, the discussion has already begun. If nuclear power is less than the energy cake in the future, it does today, it is free growth for ecological, green energy companies.
Electric cars - with warrants for the electrical network more fuel-efficient cars coming on the back of the mandates for a cleaner environment, more plug-in hybrid mean more pressure on the United States of powered coal.
Fossil fuels : coal, oil, etc. more expensive hand become the increase in the international application. The oil is particularly beneficial, because very little is produced within us borders. High price of oil means that the thrust towards alternatives becomes only stronger.
Hmmm, looks like solar, wind, and other alternative warrant will virtually require tons of spending on alternative energy investments.
The risk, seems, is policy. The laws are brandishing nuclear energy production, as is the perception of the public. Requirements for better MPGs on passenger vehicles mean more plug-ins, and the cost of battery technology is in rapid decline. Soon enough, the US will need more alternatives as sources of energy required by current law. This trade is superb, especially with the rise in oil prices.
I would be a buyer in the long term but only on serious dips. PE ratios are dizzying, but PEG is reasonable. I do not want growth to buy, I want to buy on value, and then take advantage of growth! This is how money is made, after all.
Business, economy, Stocks electricity, energy, investment in the environment, green, nuclear, oil, tax credits
No comments:
Post a Comment