Posted by
Average Voter on Sunday, January 04, 2009 11:54:56 AM
Investing in green technology has always been risky and it seems to be no different now. It's funny how tied that kind of investing is to the price of fuel at that time.
In the second half of 2008, renewable-energy shares tanked.
The WilderHill Clean Energy Index, a collection of 51 green companies, ended the year down 70%, compared with a 34% drop in the Dow Jones industrial average.
On top of that, the price of fossil fuels plunged, restoring conventional energy's status as the low-cost alternative -- costing investors lots of money. The Standard & Poor's energy index lost 35.9% last year.
"It got a little bit frenzied like the tech bubble in '98 and '99," said Brent Kessel, co-founder of Abacus Wealth Management.
Venture capitalists backed projects that weren't fully thought out, and investors rushed in too.
Buying green stocks and bonds was a trendy thing to do. Earlier this year I considered putting a little money into the rewable markets. Good thing I didn't, I would have lost more than I already have.
As the article says, it's not a bad idea to invest in some green companies. Factor in the incoming Obama administration, where more focus will be put into green technologies, and you could have a profitable investment. Just do your research.