When investing in stocks, it’s important to decide which kind of sectors are popular and why, so you can take advantage of the most promising investment and trading opportunities. It isn’t always easy to find the right industry to invest in at the right time. To help you determine which sectors to invest in, you should have a look at the general investment ‘themes’ driving the markets.
Among the hottest sectors to invest in this year, the renewable energy industry is on top, and while the International Energy Agency (IEA) saying that renewables are stronger than ever, traders are looking for the best energy stocks to trade. Solutions to cut emissions and address climate change are therefore attracting more and more investments, allowing companies to develop solutions to preserve natural resources and produce alternative energy sources.
According to an IEA recent report, renewable electricity expanded at the fastest pace in 20 years. In addition, solar and wind are more and more popular and set to become the “new normal”.
With more and more droughts, wildfires, flooding, and other extreme meteorological events, governments are increasingly aware of climate change effects. That’s why they’re acting, with massive investments and fiscal plans to improve their ability to deal with the impact of climate change. For instance, the American Senate recently passed energy measures (bill on climate and energy initiatives) improving energy efficiency and climate resilience of current infrastructures that will likely be discussed in the vote on the infrastructure bill.
Investing in the renewable energy sector also allows investors to make a difference with their investment choices, by focusing on companies following environmentally conscious business practices and respecting the natural resources of the planet.
While you can invest in large companies, there are also smaller firms in the sector, like penny stocks. If you’re interested in supporting small companies in their effort to reduce the use of non-renewables energies, have a look at these top energy penny stocks.
So, is it a good time to invest in renewable energy stocks? Yes! Renewable energy resources will definitely play a significant role in the future. Sustainability is here to stay, with more and more countries and companies acting on the mission to reduce their impact on climate change and to ensure renewable energies are increasingly used.
Another great advantage of the renewable energy sector is that there is something for everyone. You could turn to companies supplying required assets and equipment to reach these goals, as they will increasingly be needed and therefore offer great investment opportunities. You could also invest in companies generating, distributing, and selling renewable and clear energy. There are also companies working on technologies to offer a less carbon-intensive global system to optimize the use of resources to minimize environmental impact.
