I try my best to keep politics out of my commentary, but no matter how you slice it, some people are going to find this post political (even though I don’t really think it is). This post is actually about alternative energy, not politics. Whether it’s good or bad for certain politicians to support alternative energy or not support it, I’m not here to debate that. I’m only here to assess who is going to support alternative energy, and how that can make me (and you) money.
Right now, love it or hate it, the bottom line is this: Our newly-elected federal government will likely pass legislation that will promote renewable forms of energy. This could mean that win and solar will soar. Other renewable energy stocks, as well. In the past, we’ve definitely seen that governments like to try to pick winners, and sometimes, just by virtue of the government backing a certain company, that company’s stock can skyrocket, making shareholders a lot of money. I certainly intend to be one of those shareholders, and if you care about making money, then you should too!
On the flipside of that coin, this could also mean that oil and gas stocks could have a tough road ahead of them. When government backing shifts from traditional forms of energy to renewable energy (as this Reuters article makes clear is already happening), media attention will shift alongside it, and before long, I feel strongly that oil and gas stocks could plummet as a result.
Have any doubts? According to that same article, published just this week, “U.S. Treasury Secretary Janet Yellen on Wednesday released details of a tax hike proposal that would replace subsidies for fossil fuel companies with incentives for production of clean energy in President Joe Biden’s infrastructure plan.” This should come as no surprise – Biden has been promising for quite some time that he’s willing to put as much as $2 trillion in taxpayer funds into developing a carbonless energy industry.
For our purposes on this channel, whether you agree with Biden or not doesn’t matter. All that matters is this: What is the Biden administration planning to do, and how can we get ahead of it to profit from those plans? That’s why I’ve said this post isn’t truly political. Whatever your opinion is of Biden, you should really put it aside, and pay attention to what he’s actually doing, and how you can make money from it – good luck!