To make money with these names, all you need is a taste for risk and the desire to fight climate change
Investors interested in renewable energy-related penny stocks often fit a certain profile. That is, they’re likely to be highly risk-tolerant, something that is essentially a necessity for these kinds of investments.
The allure of penny stocks is their greater volatility versus higher-priced, more well-established equities. The outsized returns they can provide at a moment’s notice can be very attractive. But that is also balanced by real downside. So, because the risks are greater, investors should be extra cautious in this category. As they say, you should only risk what you are willing to lose.
Still, investors in penny stocks seek quick gains while renewable energy investors are looking for growth derived from the prioritization of low carbon emissions. As ideas like carbon pricing gain more steam and the Oil Majors start to shift their decades-long strategic plans, it’s becoming more evident that renewable energy is reaching a critical mass. That means now is a great time to get onboard with the trends fueling the broader energy market.
This article originally appeared at InvestorPlace.