Solar energy is having a moment. For decades, oil and coal have been our dominate forms of energy, but recent world events *ahem* *global pandemic* have caused cracks in their armor that are letting some sunshine seep through.
Today we're taking a look at why solar energy is starting to shine so brightly, and some ways you can bask in its light.
📰 In the Headlines
Translating some of this week's biggest stories
Translation: Investors Are Very Excited About Streaming
The OG in the world of TV streaming is here to stay. With the recent news of Disney's new focus on streaming, investors are reassured that your weekly Schitt's Creek marathons won’t be ending when lockdowns do.
Translation: Unemployment is Going Back Up
Now that some states are lifting lockdowns, we are starting to see some of the long-term effects COVID will have on the job market. This doesn’t necessarily mean these jobs are gone forever, but it is definitely below early expectations.
Translation: Investors Expected People to Stop Getting COVID By Now
This week, the UK, France, and Germany have all reinstated lockdown measures due to an uptick in COVID cases, and investors are worried this might mean the economy will not be getting back on track as soon as they had hoped.
🌅 Sunrise, Sunset
Even by 2020 standards, the oil and coal industries have been through a doozy of a year, and their problems don’t seem to be going away.
What has been going wrong for the energy incumbents?
- ⚙️ Manufacturing Slowdown: Factory shutdowns dramatically reduced the demand for coal, and even as they open back up, worker shortages are keeping them from getting back to full energy consuming production.
- ✈️ Grounded Flights: Airline travel was one of the biggest consumers of oil, and travel restrictions have left oil companies in a sticky situation.
- 🏡 The New Office: Work from home policies have taken millions of daily commuters off the roads, and now, many big companies are in talks to make remote working a more permanent solution.
The surprise is, as we see these traditional energy sources are struggling, the solar energy industry is only getting stronger.
A few of the sources behind solar’s rising power:
- 📱 Better technology: The price of solar equipment has dropped by 89% since 2010 and is absolutely expected to get cheaper. In fact, there is literally no end to lowering costs in sight...
- 📉 Low Interest Rates: Even with the price going down, it is still expensive to completely switch over to solar. The current record-breaking low interest rates are easing the pain of the upfront costs, making it more attractive to go green.
- 🎙 Public Appeal: As any Public Relations firm will tell you, going green is always a safe bet. Investing in renewable energy is an easy way for companies and politicians to make headlines and win the hearts of the public.
How can you get in on this?
There are a lot of ways to hop on this rising star. Here are 4 ways you can get invested in the solar moment:
- Solar Company Stocks: Tune in to tomorrow’s podcast episode to hear John break down solar company stocks we are excited about. I know, the anticipation is killing you...
- Mini Energy Bonds: While a little bit riskier of an investment that traditional stocks, mini energy bonds are a great way to fund small solar companies that are just getting started, and can provide some great returns if the company takes off.
- Mutual Funds: If you want to play it a little safer, firms are starting to put together mutual funds for the earth-loving investor.
- Get your own solar panels: I know this isn’t possible for everyone, but if you have some extra roof space, this guide will help you determine if going solar is the right move for you.
One last note: There are many effects, both social and economic, to the growth solar and other renewable energy. No matter how invest, where you put you money doesn't just impact you, but the entire global community.
Investing in renewable energy has the potential to not just increase your wealth, but help set up a better and healthier world for future generations.
Word of the Day
(n.) An investing option where a professional money manager pools together many people's money and invest it for them.
There are thousands of different kinds of mutual funds, and they tend to be great low risk, long term investments.
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