What Stocks Are Good Investments?
Call it "the renewable energy sector" or "green-chip stocks" or "the
green energy economy," but stocks from companies that are developing green energy are poised for growth over the next few years, and would be very good investments now. Leaders like Barack Obama have stated many times that the future of our economy is related to the development of renewable energy; here's how that future is represented on the stock exchange.
Significance
The International Energy Agency (IEA) released its World Energy Outlook on November 12, 2008. As the world's foremost source on global energy trends, the IEA predicted in the Outlook that "Modern renewable technologies grow most rapidly, overtaking gas soon after 2010 to become the second-largest source of electricity behind coal."
Types
Green-energy stocks are issued by companies involved with wind power, solar power, biomass, hydropower, marine energy, geothermal and hybrids, as well as everything related to the parts-manufacturing and sales functions of these industries. In addition, our infrastructure will need to be improved to deliver green energy efficiently, which opens the door for another sector of green-energy stocks.
Identification
Publicly traded companies currently working to advance renewable energy in the United States include both familiar names and names that you may know in the future. General Electric, traded as GE, is one of the leading wind-turbine suppliers in the world. Other names you've likely never heard of are Evergreen Solar (traded as ESLR), Trina Solar (traded as TSL), GWS Technologies, GWSC and Raser Technologies (traded as RZ). All of these and many more are currently traded on the New York Stock Exchange (NYSE) or on NASDAQ.
Function
Companies offering green-energy stocks are working to eliminate our reliance on fossil fuels. Oil and coal are not the answer for our environmental woes, as is evidenced by global warming. They are also not sustainable resources in the way that wind, solar, geothermal and other renewable energy sources are, meaning that wind will still be around long after the oil wells run dry. In 2007, the National Research Council report stated that we only have about 100 years of coal left. As long as the sun shines, solar energy is possible.
Potential
The potential for growth among green-energy stocks is tremendous as the world begins to focus more on our renewable-energy options. Green energy is more than just a catch phrase; it is the wave of the future. Companies with the vision to develop these resources and investors with the vision to invest in these companies will reap the rewards of green growth.
