Originally published November 28 2005
Brokers talk about renewable energy investments
by Mike Adams, the Health Ranger, NaturalNews Editor
Along with a group of German solar companies, the Merrill Lynch New Energy fund has provided investors with superb returns, gaining 56 percent in the last year.
We would all like to live in a pollution-free world, but investment opportunities in emission-free renewable energy might not be as sustainable as interest in the sector would lead us to believe.
Poppy Buxton, a portfolio manager of the fund, attributed the performance to higher oil and natural gas prices, as well as growing concerns about climate change and energy security.
She cautioned, however, against investing in renewable energy based on mood and macroeconomic data alone.
"Although there is a high correlation between the oil price and stock market performance of clean-energy companies, there are other drivers to be aware of," Buxton said.
"Investors have identified clean energy as an area of growth, but recent history has demonstrated that share-price performance does not always reflect alternative energy needs," he said.
German solar companies have been on a tear this year, with one of the biggest companies in the subsector, SolarWorld, gaining 350 percent through September.
At the other extreme, many fuel cell companies, which produce electricity from an external fuel supply of hydrogen and oxygen, have done little more than tread water.
Henderson invested in one such company, Ballard Power Systems, more than 10 years ago in the belief that this was the energy solution of the future.
"The market is wanting to see more evidence that fuel cell companies such as Ballard and Plug Power are going to be commercially successful," Henderson said.
Michael Liebreich, chief executive and founder of New Energy Finance, a provider of data and analysis on renewable energy and technology stocks, has compiled an index that tracks the performance of the largest 50 clean-energy companies.
Todd Warren, a member of the natural resources team at First State Investments in Australia, said he preferred to play the alternative energy theme by investing in uranium exploration and production companies.
All content posted on this site is commentary or opinion and is protected under Free Speech. Truth Publishing LLC takes sole responsibility for all content. Truth Publishing sells no hard products and earns no money from the recommendation of products. NaturalNews.com is presented for educational and commentary purposes only and should not be construed as professional advice from any licensed practitioner. Truth Publishing assumes no responsibility for the use or misuse of this material. For the full terms of usage of this material, visit www.NaturalNews.com/terms.shtml