Green Energy Stocks – Best Choice for Novice Investor
If you are a novice player at the stock market considering investing into green energy stocks, we applaud your great insight to help reduce the effects of global warming and create new ways of generating new cleaner energy and stop fossil fuel dependency.
Green mutual funds could become your great initial investment that will allow you to spread your risk across a number of alternative energy companies rather than putting all your money into individual green energy stocks. It’s currently considered very risky to invest into single-sector alternative energy funds like, for example,biomass or wind power stocks. The best green mutual funds to look into for novice investors are Winslow Green Growth Fund (WGGFX) and Calvert Global Alternative Energy Fund (CGACX) that are currently the top power players of green investment.
Perhaps, another best choice for a novice investor to start with is trying green penny stocks, or stocks that trade under $5.00 limit to help you gain confidence and learn about the current trends among green energy stocks.
In the light of the recent green investing hype, it is very challenging to weed through truly green energy stocks v.s. stocks that claim to be green by companies whose sustainability practices are very much of a doubt. Many affluent stock analysts feel that wind energy stocks have gained the most trust among green investors due to relatively low cost technologies allowing wind generated energy to compete with fossil fuel power generation. Solar or biomass energy stocks, on the other hand, can not boast low cost technologies which are essential to maintain truly sustainable alternative energy production.
Unfortunately, green energy stocks prices are very much driven not by a supply & demand curve like it should be in free markets but by a number of government incentive programs, subsidies and regulations. We are yet to see a true green energy stock exchange in the future.