Energy Investing – Mar 2016

Have you  heard of those new clean energy projects coming onstream? Or you might have heard about some other projects in their conceptual phase? I’m sure you have! In case you haven’t, here’s a few: Canada’s Energy Projects

Let’s be frank! Why invest in Energy?

For starters, the global energy market is valued as a $7 trillion dollar industry, making it the most valuable industry on the planet. It is roughly 10% of global GDP and (get a load of this); global energy demand will grow roughly 30% by 2035. Electricity demand is set to grow at double its current rate, causing prices to rise 15% by 2035 if we aren’t careful (Forbes). I’m sure all of us can attest as we have seen them rising for some years and may rise in coming years.

forecast_energy

The good part of the story  is this; investing in energy is indirectly investing in many other industries simultaneously. Sounds like a secure investment portfolio right? Investing in energy funds that have biofuel Companies in the mix is also an investment in Agriculture. A portfolio containing an EV carmaker like Tesla or Photovoltaic Cells manufacturer supports the tech and automotive industries. These types of investments are more stable and reliable. Think about it, energy is everywhere and here to stay. We all need and use it so why not benefit from using it?

One investment that is based primarily in Renewable Energy is The ALTEX Mutual Fund (Firsthand Alternative Energy), which is based in the United States. The Canadian counterpart is The Omega Canadian Equity Fund which gained 29.1% over the past two years (Globe & Mail). Another stable Canadian fund which gained 46.3% over the past two years is The Redwood Equity Growth Fund.

In many instances, investing in energy directly supports the construction industry, and assists many projects in getting off the ground. We owe it to ourselves and to our planet to be more kind to it with more sustainable energy options..

Marcus Hinds