How investors should react to a miserable year for green energy companies
Over the past 12 months, the S&P/TSX Renewable Energy and Clean Technology Index lost about 29 per cent. That’s deep bear market territory and a huge disappointment to investors who want to direct their money to climate-friendly businesses. So, what’s the problem? Demand for energy is high and fossil fuel companies continue to thrive. The S&P/TSX Capped Energy Index shows a three-year average annual gain of 64.45 per cent, although it’s been virtually flat over the past 12 months.
In periods of higher volatility and indiscriminate selling - like we’re seeing now - you can often find companies that have been unduly sold off. In this latest instalment of the Screens With a Theme series, portfolio manager Ryan Modesto that are down at least 20 per cent over the past month, yet have limited exposure to the financials sector and are posting healthy revenue growth and cash flows.