If you watched the Presidential debate, Vice President Biden said to battle climate change, the US needs to go green in terms of vehicles and saving of energy through retrofits. If Biden wins and the polls suggest he will, Wall Street firms are analyzing which green companies to own.
In an article by David Randall of Reuters, portfolio managers from Gabelli, Fairpointe Capital and Eaton Vance (soon to be a subsidiary of Morgan Stanley) are buying shares of companies ranging from semiconductors to industrial equipment to utilities.
Mr. Biden has proposed a $2 trillion spending including installing more than 500,000 electric vehicle charging stations by 2030.
The Invesco Solar ETF has risen 20% in October, the VanEck Vectors Low Carbon Energy ETF is up 11.3% and the iShares Global Clean Energy ETF is up 14.4%.
Chris Dyer, director of global equity at Eaton Vance is buying companies such as Schneider Electric SE. Eaton Vance is looking at companies that are particularly geared to energy efficiency.
Cheryl Smith at Trillium Asset Management is looking at semiconductors and automotive components that would benefit from a push to electric vehicles.
The Global X Autonomous and Electric Vehicles ETF is up 5.7%
President Trump loves to talk about the oil industry however Exxon Mobil and Chevron has shed 51 and 40% respectively.
Linking to dividend paying stocks, the oil companies have been great dividend payers for generations but things change and it is always important to remember the top 10 companies of the 1980’s is not the top 10 companies of the 2010’s. Companies are still making money but the economy or alternatives come up. Change will happen, hopefully it happens over time and you can adjust to it and continue to earn dividends from profitable companies.
There are more questions than answers, till the next time – to raising questions.