| With the popularity of clean energy, carbon reduction | | | | However, once the price returns to more common |
| and Earth friendliness, it would seem that | | | | levels, sustainable energy still takes a back seat to |
| investments in alternative energy funds would be | | | | fossil fuels. |
| virtually risk free. But just like any emerging industry, | | | | Like any energy investment, alternative energy |
| there is no guarantee that all sectors of the market | | | | sources can be greatly affected by regional |
| will succeed. Just like the tech bubble that began | | | | insecurity. Certain areas do better when it comes to |
| forming in the early and mid 90s, the alternative | | | | green fuels just as some areas have more fossil |
| energy market will likely soon divide the winners from | | | | fuels. Solar doesn't do well in Ireland and geothermal |
| the losers. If you are lucky or smart enough to pick a | | | | is restricted to areas with significant seismic activity |
| winner, you'll soon be rolling in green. On the other | | | | like southern California. If you invest in an industry |
| hand, losses can be significant for those who chose | | | | that is focused on an unstable nation, there is no |
| the idea that wasn't embraced by the market. | | | | guarantee of anything. |
| Another important factor when it comes to energy is | | | | Alternative fuels currently enjoy relatively low tax |
| government regulation. Other sectors are relatively | | | | burdens. But don't count on this always being the |
| free of government interference as long as they | | | | case. As they grow in popularity, governments will |
| obey the basic laws. Energy, on the other hand, is | | | | increasingly see the opportunity to reap tax |
| seen as something with national security implications | | | | revenues, like they currently do with gasoline. This |
| and is treated differently. Since there's no way to | | | | can have a tremendous affect on the market. |
| know how the government will react one way or the | | | | One downside of sustainable energy that is rarely |
| other, this adds a good deal of risk to any alternative | | | | discussed is the possibility of having too much. For |
| energy investment. | | | | the world, an ample supply is great, but for an |
| It's certainly not difficult to find an alternative energy | | | | investor it can mean the bottom dropping out of an |
| fund to invest in. These days the market abounds | | | | oversupplied market. Energy, as the oil companies will |
| with them. Whether it's solar, wind or battery | | | | tell you, is an industry extremely dependent on |
| powered vehicles, there's a fund to meet any | | | | supply and demand. If the market is flooded with too |
| investor's outlook. The biggest risk, regardless of | | | | much energy, the price people are willing to pay |
| which one you choose, is volatility. Energy still | | | | drops rapidly. The more popular the investments |
| revolves around oil, coal and natural gas. When these | | | | become, the greater the danger that the |
| industries are demanding high prices on the | | | | investments will lose their demand. |
| commodities markets, alternative fuels soar in value. | | | | |