The Trump-driven dip in renewable energy stocks will be perceived as a strategic buying opportunity by savvy investors, affirms the CEO of one of the world’s largest independent financial advisory and asset management organizations.
The bullish prediction from Nigel Green of deVere Group comes as shares in companies like Ørsted, saw a 14% drop, and Vestas, is down 10%, as concerns grow that Donald Trump could halt key renewable projects once he is back in the White House.
He says: “Trump’s promise to stop offshore wind projects on ‘day one’ of his presidency has raised concerns among renewable energy companies, especially those heavily invested in the offshore wind market.
“The market’s reaction is understandable, yet it overlooks the broader, global trend toward clean energy that continues to gain momentum, regardless of political cycles.
“Despite the potential for a temporary slowdown in some US-based projects, the long-term outlook for the renewable energy sector remains incredibly positive.
“This presents a significant opportunity for investors to buy into the sector at a discount while the market remains focused on short-term uncertainties.”
While the US may experience a period of political turbulence, the global renewable energy transition is not dependent on any one country or political leader.
The Biden administration has worked aggressively to push America toward greener energy sources, setting a target of 30GW of offshore wind by 2030.
“While a Trump victory could shift some US policies, the momentum behind renewable energy is undeniable, with countries across Europe, Asia, and the Middle East accelerating their green energy investments,” notes the CEO of deVere Group.
“Governments around the world are investing heavily in renewable energy solutions to meet climate goals, reduce carbon emissions, and diversify energy sources. The shift towards clean energy has become a fundamental aspect of economic planning and national security, with no signs of slowing down.”
He continues: “The renewable energy sector’s growth is driven by long-term global trends, not by political administrations.
“The market’s short-term reaction to potential US policy changes is understandable, but for investors with a long-term horizon, this dip represents an opportunity. The world is moving towards green energy, and no political leader can stop this seismic shift. Investors who recognize this will benefit from the ongoing global commitment to renewable energy.
“Smart investors know that market fluctuations present opportunities. We believe that those who accept the inevitability of the green energy transition and act now could be well-positioned to reap the benefits as the sector grows.”
With renewable energy technology advancing and becoming more cost-competitive, the sector is increasingly attractive to both institutional and retail investors.
Companies in the renewable energy space, particularly those focused on offshore wind and solar power, are well-positioned to continue their growth, even in the face of short-term political uncertainty.
As the world’s energy landscape continues to evolve, renewable energy will in the future be at the centre of the global economy.
“As such, this market dip will be viewed as an opportunity for investors to enter the green energy space at a favorable price point, setting themselves up for long-term gains,” concludes Nigel Green.
