Energy shares are big business right now as residential electricity bills rise and renewable players make bigger and bigger gains. Reuters has highlighted the impact of energy stocks in pushing the Dow to all-time highs – energy suppliers and all of their connected networks are simply doing big business in the age of remote working. As the months continue, you can expect to see more of a shift and change in how energy stocks are trading, and a tightening of the market.
When that comes, looking at new avenues and strategies to make gains from energy will become a pertinent strategy to maximize gains and avoid perilous losses.
Education and Research
There is a lot of money in energy research and development, yet this part of the business remains a consistent block for the further proliferation and adoption of clean energy tech. The previous clean energy boom, before the Great Recession, famously ended in a bust: investment in the sector slumped to a measly $1.1bn.
The importance of innovation and research in renewable energy has been a crucial factor in the clean energy scene since; the promise of being part of a new, cleaner-led world is part of a strategy to help a new generation of children gain an interest in renewables. For that reason, investments into education, research, and technological development are likely to be a good way to find niche value against the ‘big’ players in the energy market.
Part of the attraction of renewable energy is the potential to become net-zero on utility bills, and even make a profit from selling energy back to the grid. This pattern of micro-selling is less clear to invest in, as it works on a home-by-home basis.
In order to get a slice of that market, NASDAQ advocates looking to companies that specialize in home energy solutions when it comes to investing. As more homeowners become interested (and invested in producing their own energy, it will be profitable to put money into the companies that allow that growth.
Solar and wind energy have dominated the renewable energy scene for years in the USA. What of the lesser-known renewable sources? The Energy Administration recently opened up new funding into geothermal technologies through their Geothermal Technologies Office. Technology in the geothermal field is something associated with Iceland and other countries located tightly on geological boundaries.
The USA is geologically active in its own right, with Yellowstone quite literally a massive volcano. There may be wise investments to be made in companies investigating power from these sources, and they are likely to be lesser-known and lower-priced in today’s market – there’s potentially a lot to be gained.
Looking for these niche avenues of investment will help your portfolio to stay fresh and stay away from overvalued stocks. It may help you to find value where other businesses aren’t looking – always a great way to boost your portfolio. In any strategy, it’ll be sustainable, with the energy futures of the USA parked firmly in the favor of renewables.