The affluent are joining a growing number investors who think that buying “green” stocks will be good for their wallets as well as the environment.
Forty percent of wealthy investors surveyed this month by Spectrem group said they were interested or very interested in environmentally responsible investments. Those surveyed have investable assets of $500,000 or more.
Affluent women were much more likely than men to feel that way. One-third of men surveyed were very interested or interested in green investments, compared to 53 percent of women.
Non-millionaires and younger investors were also more open to environmentally responsible investing, but the highest interest came from senior corporate executives. Nearly half – 48 percent – said they were interested or very interested in investing in green endeavors.
Green investments involve stocks, exchange traded funds and mutual funds of companies whose activities improve the environment in some way. The scope of activities ranges from creating alternative energy supplies – such as solar and wind energy – to industries based on recycling.
Experts predict that volatile commodity markets, including record high prices for oil, will stimulate demand for green solutions, according to SustainableBusiness.com. Forbes blogger Tom Konrad cautions that a type of bubble is building around energy supplies. He says, “We can’t keep using traditional energy sources and expect the economy to grow forever.”
Successful investors move counter to growing bubbles, he says. “During the 2007 housing bubble, the smart investors were buying credit default swaps on mortgage backed securities,” he says. “This time around, I’m buying Green Stocks.”
The list includes companies involved with renewable energy, energy efficiency, and efficient and alternative transport companies, which “will be selling the services that help us shift away from traditional energy sources like oil, coal, natural gas, and nuclear,” Konrad says.
Because it’s difficult to predict when the energy bubble will burst, Konrad recommends buying stocks that can do well in the current market, yet benefit from “the end of the current Energy paradigm.”
Here are few of the web resources available to investors interested in researching green stocks:
• Portfolio 21 Investments
• Green Chip Stocks
• greenstocks central
• best green stocks