I bought into some green energy stocks like FAN (wind) and TAN (solar) back in 2021, hoping they’d do well as people started focusing more on renewable energy. Unfortunately, they’ve really struggled. FAN is down over 20%, and TAN is down more than 50%.
Now with Trump winning, both stocks dropped another 5% while the rest of the market rallied. I’m wondering if this trend will continue since Trump doesn’t seem big on renewable energy.
I’ve thought about selling these stocks before, but I always convince myself they might rebound in the long term, despite high production costs. I’m just not sure if that’s realistic under Trump, especially with tariffs on Chinese solar panels and less government support for renewables.
Any thoughts on what to expect for green energy stocks in the next few years?
Green energy stocks need to be able to stand on their own and not rely on government subsidies. Without those, they can be very volatile. If a renewable company can’t show solid growth without government support, it might not perform well under Trump.
@Sage
There’s a misconception that renewables are heavily subsidized compared to oil and gas. Oil and gas actually get way more in subsidies. Currently, the main support for renewables is the Investment Tax Credit, and both wind and solar are cost-effective against coal, nuclear, and oil. Trump’s support of oil might make people cautious on green stocks, though.
Green energy actually did better than oil under Trump, and oil has done better than green under Biden. Don’t let your political views interfere with making smart investment choices.
Green stocks probably won’t be doing great in the short term. If you believe in them for the long haul, this might be a chance to buy in while they’re down, but be prepared to hold for a long time.
Focus more on the actual companies than who’s president. Wind and solar have struggled to be profitable and might continue to struggle. Best not to invest based on politics.
Consider nuclear stocks like URNM. Nuclear is the best way to fill the gap between fossil fuels and renewables. Wind and solar can have a larger environmental impact when you look at the entire lifecycle of the equipment.
Reeve said: @Bryn
Could you back up the claim about wind turbines being as bad as fossil fuels? I’ve seen studies saying the opposite.
Good question. The study I saw focuses on the broader environmental impact beyond just CO2 emissions. There’s definitely an effect on wildlife, according to the DoE.
The renewable industry itself is likely to grow, but I’m bearish on the stocks. Intense competition on costs will keep profits low, especially without subsidies.
Green energy stocks can be pretty volatile. I just put $100K in uranium (URA), another $140K in the S&P index (FXAIX), and $120K in JEPQ. A bit safer than just betting on green energy alone.
Eli said:
Green energy stocks can be pretty volatile. I just put $100K in uranium (URA), another $140K in the S&P index (FXAIX), and $120K in JEPQ. A bit safer than just betting on green energy alone.
It’s easy to get swept up in hype around green stocks. I’d avoid putting money into these unless you really believe in the companies’ financials. Do you think a Trump win could help us avoid a recession?