Energy Stocks
Analysts predict that by 2013, the alternative energy industry will be a $13 billion dollar industry in today's dollars. If you were to invest in a start-up alternative energy company today, you might find yourself a millionaire a few years down the line. . . like Microsoft, for instance.
Because of the upward potential, alternative energy stock portfolios are a great part of an investor's financial plan. These make excellent long-term growth investment vehicles, and the money put into them serves to further the cause of implementing the alternative energy power resources that we so badly need today and that our kids will need for their tomorrows.
People are just plain fed-up with the oil industry and its effects on gasoline prices; about global warming, greenhouse gases, polluted waterways, fossil fuels and other environmental hazards. Established corporations and start-up companies all over the world are developing alternative energy resources to correct the problems we've created for ourselves (like catering to the giant oil companies). We can do a lot ourselves by recycling, using solar energy, wind energy, and other sustainable energy mixes and using those "mixes" with a few investment dollars to create a lucrative green portfolio. Investing in alternative energy companies at this time makes a lot of financial sense for everyone and ING Direct, with its Sharebuilder program is a good place to start for those of us who know very little about stocks, investments and portfolios. Get more information at http://www.sharebuilder.com/sharebuilder.
You first want to do some careful research into alternative energy stocks. A few alternative energy companies are going after
the right markets, but that doesn't mean you should go buy every name in the sector. Investors need to be cautious about chasing the stocks especially when the Wall Street fiasco hasn't been totally resolved and trust is at an all time low. The problem in the green investment sector is that many of the major players in the alternative energy for profit game are start-ups or are in the very early stages of growth. This means they have low (even if rapidly growing) sales, and no expected profitability in the near term or even a history of earnings to research. This can lead to some bubbling, as with what happened to the dot-com industry a few years back, which is not good for investors. But, there are older established companies that are branching-off into the alternative energy side of business and these would be worth the time and effort to investigate.
Ananlysts and financial planners will play a crucial role in helping you get it right with alternative energy investing. They generally don't play around in the tiny cap stocks that have technology and not much revenue - also known as "hope" stocks. They can however, direct and recommend companies that have a clear cash-generation plan firmly in place.
Still, the outlook is very positive and healthy. The number of renewable energy funds and the amount of money flowing into these funds is on the rise. The renewable generation market is at an important stage in its development; it needs the continued support of the consumer, investor and our government to ensure that it reaches its potential and really starts to make a difference in our lives. Invest to make a difference for yourself and for the good of all.
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