Hey Everyone,
Given that higher rates could push down the ESG and clean energy sector, getting in to them at a lower point and holding seems rational to me.
If you believe that higher rates will be here for a decade or longer, it could be a long wait. However clean energy and renewable will keep evolving and growing with the transition to EVs and the evolution of the ESG movement, in spite of headwinds (no pun intended).
Some clean energy stocks will plummet significantly, other ESG stocks whose dividends are too big will continue to implode, this provides exceptional long-term stock picking opportunities. Do your due diligence carefully.
In my mind, investing in beaten down Energy names is a bit of a defensive but also long-term play. It all depends how long high interest rate environments persist for. If you believe in the long-term viability of Clean tech and ESG as a whole, you might consider a Solar ETF where you come in as there is blood in the streets for a long-hold.
Let’s also take a look at more penny stocks and micro cap names in this list.
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