Renewable energies on the stock market have had a very busy decade. As has happened in the past with other disruptive innovations such as railways, aeronautics or the internet, renewable energies have had their own speculative bubble, with its corresponding crash below. In this article we will analyze the role of renewable energies in energy production and the bubble and crash that the sector has experienced in recent years.
Renewable energies within the energy sector
The energy market is very complex. Cheap energy from oil has been getting more expensive throughout the XNUMXth century. The continuous increase in demand and a possible contraction in supply have triggered their prices. Many experts have warned that we are close, or that we have even passed the dreaded When a disruptive innovation enters the scene, it is very easy for it to lead to a stock bubble. "Renewable energies are the future" has been one of the most repeated phrases when referring to this sector. Investors go blind every time they hear that some sector is "the future", as it happened recently with internet and dotcom bubble. How could it be otherwise, in this last decade it was the turn of the bubble and crash of renewable energies.
The bubble of renewable energies on the stock market
The crash of renewable energies on the stock market
The history repeats it self. The RENIXX reached 1918.71 points in December 2007, achieving its all-time high. What has happened since December 2.007 until today? A total collapse of the index, with a fall of over 90%, considering that the index is trading at 185,38 points. In this graph you can better appreciate the crash of renewable energies on the stock market.
Are there good buying opportunities in renewable energy companies?
One of the necessary requirements to invest in a company or in a business sector is to know well what you are investing in. Personally, I have to admit that I do not know this sector, so until I increase my knowledge about the energy industry I will not invest in renewable energy companies.
However, for people who know the sector (like my friend Degui), this may be the most appropriate time to look for good companies that are trading at attractive prices to invest in them with a long-term vision. And opportunities like these should not be wasted.