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Green stocks are heavily in demand – but how sustainable are they?

”Green stock” is rapidly becoming the new buzzword amongst investors. The increasing interest in companies considered “green”, such as those involved in eco-friendly enterprise, has boosted the so-called “green stock” prices. This, in turn, has sparked a debate over whether there is a potential “green bubble.” This article follows on from our feature on green penny stocks. To read it click here The “green boom” was re-ignited in 2008, when the president of South Korea, Lee Myung-bak, declared his aim to create a green economy in his country. This year, it is the U.S. President Barack Obama who has been leading the trend. Green stocks and green funds have gone up significantly after July 16, when he declared that the rechargeable battery plant from LG Chem is the future in the U.S.

Experts are currently trying to figure out if this “green stock frenzy” is merely a passing phenomenon or the start of something significant in the long term. One senior analyst said that green stocks are holding up strong. After having undergone some technical corrections, the prices are currently more attractive, which fully justifies the forecast for a further increase. Another chief analyst at Shinyoung Securities stated that the global growth focal point has shifted from Europe and the U.S. to the leading industrial countries in Asia. In China, urbanization is growing rapidly, which is expected to broaden the expansion of green-focused businesses and, in turn, increase the prices of “green stocks”. Urbanization will lead to the deficit of fossil fuels, which means that China is forecasted to lead green growth for managing its urbanization efficiently.

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The information supplied in this article is not to be considered as medical advice and is for educational purposes only.