The Impact of Economic Conditions on Renewable Energy

Companies face a constant challenge to maintain relevance and financial viability as economic conditions, customer preferences, and government policies change.  Adept investors identify and overweight companies that successfully assess and adjust to these changes. 

The energy sector is currently dealing with the challenge of lower consumer demand and the resulting lower prices; as this article notes, “the coronavirus pandemic has crushed demand for fuels such as gasoline and jet fuel, and many expect global oil consumption to remain depressed for years.” 

Meanwhile, government subsidies and regulations provide potential opportunity for energy companies that accelerate a transition to renewable sources. 

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- Anthony Winkels is Managing Partner and Wealth Advisor at Fortis Wealth Management