You know I favor microcap technology investing.
My rationale is simple (and irrefutable)…
No other investment on Earth rewards investors greater for hitting the bull’s-eye. The problem is, the bull’s-eye always moves.
Case in point: Roughly 10 years ago, the bull’s-eye was squarely fixed on alternative energy. With oil prices above $100 per barrel , the rush toward “green” was fanatical.
Ethanol underscores the lunacy, as it now ranks among the greatest booms and busts in history.
Yet solar, wind, geothermal, biomass, hydroelectric and tidal power companies still exist. And some even thrive!
So should we be nibbling on shares? Or is green energy a lost (investment) cause in a world of cheap gas?
Here’s what you need to know now…
This Is Impossible to Ignore
I know I’m going to catch some heat for this, but climate change is real. The extent to which humans are responsible for rising temperatures is under debate. But temperatures are rising around the world. And the scientific evidence that links fossil-fuel burning to carbon emissions is vast and credible.
With that said, the U.S. government has propped up the renewable energy (RE) industry through extremely generous subsidies. In fact, as of 2016, 59% of total federal energy tax preferences ($11 billion) went to RE, according to the Congressional Budget Office.
The Trump administration is stocked with career oil and gas professionals, however. And they’re working to eliminate RE subsidies.
Operating costs are high for many RE companies like First Solar Inc. (Nasdaq: FSLR). And without federal financial intervention, these industries would likely collapse.
In the short term, the pressure will likely keep a lid on renewable energy stocks. But in the long run, the best RE companies will not only survive but thrive.
So if you’ve got a strong stomach for volatility, buy now — and hold onto your hat.
