FX.co ★ "Green" energy: investors' new love

Experts note that the shares of "clean" companies today are the best investment, not only in comparison with the securities of traditional manufacturing companies but also against the background of the market as a whole.

In his own column, Matthew Winkler, the co-founder and ex-editor of Bloobmerg News, reports that the NYSE Bloomberg Americas Clean Index, which includes 141 American companies, has posted a 32.7% profit over the past few years. In contrast, the classical energy corporations, included in the S&P 500 Energy Index, for the same time showed a yield of about 1%.

Since early 2015, the rise of the Clean Energy Index itself has amounted to more than 6%. This indicator recorded that the "green" power industry bypassed both the S&P 500 and Russell 3000 indices, that grew by 3.1% and 3.8%, respectively.

Analysts say that the "humane" energy industry has been encouraging investors not so long ago, for the last two years. The energy of the future has been gaining popularity recently, however, experts explain, the demand for it should increase from year to year.

In the article, Matthew Winkler explains that the weakening of the position of traditional energy producers was also associated with a sharp collapse of oil in the second half of last year.

It should be noted that the development of "green" energy annually fixes the price reduction, while the market of traditional energy carriers fixes the price hike. So, 7 years ago solar energy cost $315 per megawatt-hour, today this amount is $128. Conversely, the costs of mining and processing of traditional raw materials are constantly increasing, as their stocks in inexpensive sources record depletion.