Energy Sector Struggles, But Brighter Dawn Could Be Coming for Alternative Energy
Right now, as the price of oil continues to drop, the energy sector is struggling on the stock market. Today that’s no lone feat; the broader market is falling as well. However, oil prices are sending energy stocks lower, and that means that an entire sector is having problems.
Brighter future for alternative energy stocks?
Even though alternative energy stocks are dropping along with the rest of the energy sector, there is hope that they will gain in the future. It is true that lower oil prices make alternative energy less desirable (the urgency to wean us away from fossil fuels is reduced). However, by many estimates, the current problems faced by oil are due to a bursting commodities bubble. There is plenty of speculation that an energy crunch is on the way, and that oil prices will have to rise in response to that — although it may take the next two decades for this to be realized.
What this means, though, is that at some point the energy sector is likely to rebound. And alternative energy stocks are likely to rebound as well. Indeed, Barack Obama’s victory in the election is seen as an indication that alternative energy is about to play a bigger role in satisfying America’s energy needs. This means that alternative energy stocks may be a good choice right now. After all, they are very low and represent a good buying opportunity. It is, however, important to consider your options. Some alternative energy investments won’t pan out. For the future, though, I personally like JA Solar (JASO) and the Wilderhill Clean Energy ETF from PowerShares (PBW).
Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.




There has been some