Green stocks are heavily in demand – but how sustainable are they – part 2.

With extensive administrative and financial support, some major American and European car manufacturers are now creating stronger partnerships with various component producers from South Korean in order to produce vehicles that will be energy-efficient. All the signs point to favorable conditions for green stocks and green funds. Announcements made by governments are projected to continue encouraging the trend for investing in green-related projects. This year, some companies that are considered “green” have been forecasted to report historically high revenues. However, some analysts say that it is too early to determine whether their profit curves may be reduced dramatically in the near future. Even with the share price increase, those stocks still have quite low PERs, and their competitiveness with overseas stocks in similar industries is questionable.

Other experts have also warned about taking a “blind approach” toward green stocks and green funds. They are very cautious of a possible “green bubble,” and urge investors to steer clear of speculative trading. They recommend investors to purchase leading stocks and only those with a long-term vision. Analysts are wary of the speed with which green stocks seem to be growing and compare the current “green frenzy” with the “dot.com rally” that dominated the markets in 2000.

For more information, please go to:

wikipedia.org,
green.wikia.com

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