Safety in Green: Even in Tumultuous Times, Green Investing Holds Promise

Safety in Green
Even in Tumultuous Times, Green Investing Holds Promise
By Brita Belli

http://www.emagazine.com/view/?4581&printview&imagesoff

Volatile economic times have a way of scaring investors into what they perceive as “safe” money moves—investing in large, established companies with long track records and historically healthy returns. Green companies are, in many cases, newer, smaller and considerably riskier. They haven’t been around long enough to inspire confidence, and they are subject to external forces like government policy and fluctuating oil and gas prices.

When these latter prices fall, interest in renewable energy tends to drop considerably. It’s what killed many renewable energy companies in the 1980s. These companies are particularly tied to the changing whims of consumers, too, and rely on homeowners to have the upfront money needed to install technologies like solar panels on their roofs or geothermal heat pumps in their backyards. In fact, says, Jack Uldrich, author of Green Investing: A Guide to Making Money through Environment-Friendly Stocks (Adams Media), the solar industry has been particularly hard hit by the recent economic downturn.

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