Pay close attention to climate change stocks.
Over the next two weeks, President Biden will travel to Europe, with plans to discuss the global climate change issue. That could be a major boon for solar, wind, hydrogen, and even electric vehicle stocks, like Tesla (TSLA) and Nio (NIO).
Investors may also want to take a look at related ETFs, like the iShares Global Clean Energy ETF (ICLN), ALPS Clean Energy ETF (ACES), and the Invesco Solar ETF (TAN). Even stocks associated with climate-resilient buildings and infrastructure may do well, especially with a bill that could encourage the development of greener solutions.
All should perform well as the world pushes for a greener future.
While in Europe, Biden will attend the United Nations Climate Change Conference of the Parties, or COP26 in early November. “COP26, which was originally due to take place in 2020 but was pushed back due to the pandemic, will see world leaders come together to discuss more ambitious climate action as U.N. researchers warn that global warming is dangerously close to spiraling out of control,” as reported by CNBC.
All after the UN warned that efforts to limit global warming “will be beyond reach” in the next two decades without an immediate reduction of emissions. It’s also part of the reason why countries all over the world are racing to cut emissions.
The U.S. just pledged to cut emissions in half by 2030. The European Union has plans to cut carbon emissions by 55% by 2030. China said it wants to achieve carbon neutrality by 2060.
With all of that happening, there’s still time to jump on green stocks.