Tumultuous geopolitical and economic times may be clouding the prospects for the high-growth renewables sector now, but investors should not lose sight of the longer-term potential of areas such as solar and green hydrogen, Edward Lees, co-head of the Environmental Strategies Group, tells chief market strategist Daniel Morris on our weekly Talking heads podcast.
Green technologies offer consumers ways to save money and lift their energy self-sufficiency. Another field benefiting from structural support is green hydrogen. Its potential is noteworthy in industrial and heavy-duty applications including trains, planes and ships. “There is a real opportunity to reduce our carbon footprint here,” Lees argues, adding: “Having a three to five-year view is the right thing [for investors] to do.”
You can also listen and subscribe to Talking heads on YouTube.
Talking heads brings you insights on topics that matter to investors, analysis of the world and financial markets, and conversations with our investment experts, all through the lens of sustainability.
Please note that articles may contain technical language. For this reason, they may not be suitable for readers without professional investment experience.
Any views expressed here are those of the author as of the date of publication, are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may take different investment decisions for different clients. This document does not constitute investment advice.
The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay. Past performance is no guarantee for future returns.
Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions).
Some emerging markets offer less security than the majority of international developed markets. For this reason, services for portfolio transactions, liquidation and conservation on behalf of funds invested in emerging markets may carry greater risk.