Green Energy Investing Can Be Risky
Wednesday, March 17, 2010 12:16 PM
By Harrison Hove
As the stock market slowly climbs, traders are busy on the exchange floor. People are trying to rebuild their nest eggs, but Edward Jones financial advisor Fred Mankins said green energy investing may not be the solution.
"There is a tremendous amount of volatility and risk in this area because it's such a new technology," he said.
Mankins likens the proliferation of green energy companies to another phenomenon from the not so distant past.
"It's a lot of speculation, a lot like the dot com bubble we had back in the late 90s," he said.
There is one key indicator that can help you determine where to invest - a company's earnings.
Profitability is vital to future success.
Mankins said that future growth could also be impacted by government decisions.
"Politics play an important part in the development of this technology. In other words, is the federal government creating tax policy that is favorable to this to spur investment?" he said.
For now, like most new investments, there's a lot of unknown yet when it comes to green investing.
It's up to you to research the best way to grow your green.
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