Long-term climate change investments seem like slam dunks to me; spending to control climate change is a profitable trends that I think is unstoppable, suggests Jim Powell, editor of Global Changes & Opportunities Report.
The public is demanding that government agencies and our leading companies do more to fight rising global temperatures. Voters have had all they will tolerate from officials who won’t address the devastating wildfires that destroy thousands of homes every year — and the droughts that are pushing food prices through the roof.
I think any politician that isn’t on the same page with the public’s climate change expectations will be shown the door during the November mid-term elections.
The two most promising climate change investments that I previously recommended are Vestas Wind Systems (VWDRY), and First Solar (FSLR). Both are recovering from steep 2021 declines.
Denmark-based Vestas Wind Systems has been hammered by raw material and component shortages due to the supply chain interruptions caused by the Covid-19 epidemic. The giant blades are made of lightweight composite materials that are stalled on container ships anchored outside jammed US seaports. Ditto for some essential turbine machinery.
The good news is, once the ships are unloaded, Vestas will be able to fill orders for its wind systems that have been accumulating for months. The company has a rags to riches outlook.
First Solar is in a similar position. With First Solar, a political roadblock added to its supply problem when Washington banned the importation of Chinese polysilicon due to Beijing’s internment of Uyghurs. Polysilicon is an essential raw material for the company’s solar panels.
I think this is an excellent opportunity to buy Vestas and First Solar — both of which are now bargains. I don’t think anything will stop the growth of renewable energy. Not only are solar and wind power necessary to fight climate change, they are becoming competitive with fossil fuel energy.
