The 2022 renewable energy market looks much different than it did two years ago.
In 2020, investors piled millions of dollars into renewable energy stocks as the U.S. moved toward relying more on clean energy and less on traditional fossil fuels.
Clean energy stocks soared.
Renewable Energy Grinds to a Halt
Exchange-traded funds (ETFs) holding these stocks crushed the 17.2% gains we saw in the S&P 500 in 2020:
- Global X Renewable Energy Producers ETF (RNRG) jumped 26%.
- First Trust Global Wind Energy ETF (FAN) pushed 62.2% higher.
At the start of 2021, renewable energy stocks were poised to climb even higher when President Joe Biden announced his Build Back Better bill. It included 10-year, full-value tax credits for new clean energy electricity generation. He even offered tax refunds.
The plan would create 600,000 new jobs in clean energy and lower power emissions to sub-2005 levels by 2031.
In this episode of The Bull & The Bear, I tell you why a wrinkle in the growth of renewable energy is only temporary.
Despite all its hype, the Build Back Better Act is effectively a dead issue in Congress in its current form.
That has pushed investors out of the renewable energy stocks they rushed to buy in 2020.
To some, that spells the end of the renewable energy run in the stock market.
But in this episode of The Bull & The Bear, I tell you why that isn’t the case.
P.S. Chief investment strategist Adam O’Dell, Green Zone Fortunes co-editor Charles Sizemore and I remain bullish on renewable energy.
In our premium stock research service, we closed out a clean energy trade that netted subscribers a 125% gain in just five months and a 54% gain in 13 months!
To learn more about Green Zone Fortunes, click here.
The Bull & The Bear
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Matt Clark, CMSA®
Research Analyst, Money & Markets
Matt Clark is the research analyst for Money & Markets. He is a certified Capital Markets & Securities Analyst with the Corporate Finance Institute and a contributor to Seeking Alpha. Prior to joining Money & Markets, he was a journalist and editor for 25 years, covering college sports, business and politics.