Green Energy And Electric Vehicles: Investment For 2022
Get rich quick schemes, they rarely pan out as we wished, there’s a reason why making money takes time and effort. There are certainly ways to make your money work for you though, such as investing in Crypto or stocks and shares.
And today I’m going to be discussing my thoughts on where my shares are going in 2022, please note though, I’m not a financial advisor, these are just my thoughts on which sectors I feel could be interesting places to look into for your portfolio in the coming year.
Getting into a market at the right time is vital, obviously, buy low, sell high, that’s the dream. Take the Metaverse phenomenon or even Cryptocurrencies, for example, both have taken a dip in price over the past few months, with Bitcoin being as high as £51,000 in November 2021, and nosediving to as low as £26,500 less than 8 weeks later.
My own foray into the Metaverse has so far proved to be a masterstroke of bad timing, every one of my shares, having sensed my hard-earned cash being invested, have decided to plummet with alarming speed.
I’m not worried, there’s a long game to be played, but if I had waited until now, I could have got more bang for my buck. I may even start drip-feeding more capital into the Metaverse shares I already have, but for now, I’m sitting tight to see what happens.
My own focus this year is going to be on looking at companies in the Electric Vehicle and Green sectors in which I can invest. There are multiple reasons for this, not least the COP26 in Glasgow in November 2021, where governments outlined their plans for a net-zero target by 2050.
By 2023 most large UK businesses and financial institutions are going to have to outline their plans, and publicly too, for how they plan to reduce their emissions. The following stat is staggering, but 450 of the world's top companies are in control of up to 40% of all global financial assets(!!!) and these firms have agreed to align with the Paris Agreement on reducing global temperatures by 1.5°.
This hopefully means there is going to be a huge influx of investment capital into the transition to green energy and services. The altruistic part of me also believes in the move to EV, and to a greener way of supporting ourselves, the greedy part of me wants to jump on the wagon and invest while I can.
What goes up, must come down, and vice-versa. It’s true of balloons and planes, and it’s usually true of stocks and shares. You often hear people advising to stick with what historically seems to hold its value. I have seen the price of Oil sneaking back up over the past few months, coinciding with a drop in Crypto and Metaverse, and many other stock prices.
While sticking with safe investments makes sense, and people a hell of a lot smarter than me make a hell of a lot of money from trading for a living, which I don’t, I also think that the Green energy and EV sectors are worth dipping into. The planet is telling us we can’t keep abusing it in the way we have been since the Industrial revolution, so we have to make the most of these newer technologies.
Renewable energy and Electric Vehicles will become a necessity, so it makes sense to not only hitch our wagons to it but to hitch our wallets too, maybe these companies will be the new Oil and Gold.
UK energy prices are going up by a staggering 54% in April of 2022, there is a need for these products and services, and where there is a need, there has to be someone to supply it. It’s this thinking that is leading me towards investment in these sectors.
Tesla is an obvious choice for investment, but I definitely missed that boat, the price is high, and rightly so, I’m a huge fan of the company, and I for one welcome our Musk Overlord, all hail… However, I can’t jump on at the price it’s at sadly.
So one alternative I’m looking at is Ford. That’s right, the Ma’ Bell of the automotive world, ol’ reliable, well, not that reliable over the past few years but still, I can feel a dabble coming on.
With a current share price of $17.54, I think there is still value to be had here,
Ford is integrating with several high-end tech companies such as Apple and Alphabet, they’re also pushing for a 40% volume on EV by 2030, and to be honest, it’s Ford for crying out loud. The stock symbol is “F” it’s that old, and they’re not likely to go anywhere soon. So with that in mind, I want to get on board now and ride it out for the long haul.
Arrival, a UK-based company that produces zero-emission public transport vehicles, is now floated on the NASDAQ and looks interesting, if extremely risky.
The share price has dropped through the floor over the past 9 months, with delays and even a lawsuit filed in the USA, but should they start production of their vehicles in the second quarter of 2022, I can see their price heading back up. Be warned though, it could go either way at the minute, so approach with caution and do your due diligence.
A less risky venture may be the Hannon Armstrong Sustainable Infrastructure Capital (HASI), which manages over $7 billion in assets, invest in renewable energy and companies that focus on sustainable infrastructure.
I like the idea of HASI, it spreads the risk of investing somewhat, and I like the fact that they look for investment into these kinds of markets, the share price at the time of writing is $39.90, a drop of 36% over the past 3 months, but the general consensus is an upswing on the price is due. I won’t be putting all my eggs in one basket, but a nibble at HASI at this price is a huge tempter.
I will be adding more stocks that I like over the coming weeks, and a brief overview of why I will be looking into buying small stakes in each, as I said before, I’m not a financial advisor, so please do your own research too, look after your funds, and yourselves.
If you have any thoughts on EV or the Green sectors as an investment opportunity, or just want to scathingly tell me I’m wrong and to just buy Gold, feel free to comment below!