Green tech stocks: is now a great time to buy?

Interested in green tech stocks? Here’s what Gaby Herculano, CEO of iClima, has to say about the current dip in the market!

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

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If you’re familiar with the stock market, you may have noticed that green tech stocks have taken a dip. As a result, many investors are left on the fence about possible investment decisions. On one hand, a number of investors have bought the dip in hopes of a future price surge. On the other, some investors have rushed to sell their shares to avoid any further decline.

The stock market can be extremely volatile, so predictions about future performance can never be spot on. Here at The Motley Fool UK, we advise individuals to seek professional advice before making any investments.

If the green tech stock dip is something that has caught your interest, then read on for everything that the CEO of fintech firm iClima has to say about the current state of green tech stocks.

[top_pitch]

Why has the price dip occurred?

On the subject of why green tech stocks have dipped, Gaby Herculano, CEO of iClima, explains that many companies have fallen victim to supply chain issues. She also notes that a “lack of faith in the energy sector may be a driving force behind the dip”.

However, Herculano goes on to explain that demand for green tech stocks has not decreased. Instead, she predicts that the demand for green tech will only increase as a rising number of companies make net-zero commitments.

[middle_pitch]

“Now is a great time to buy!”

Amid her optimistic outlook, Gaby suggests that “now is a great time to buy” into the stocks. The CEO explains that the rising price of gas will only increase demand for renewable green tech.

Furthermore, only a small fraction of companies have made efforts towards net-zero commitments. Yet, countries around the globe have set tight targets for renewable energy usage. For example, Germany aims to be using 80% renewable energy by 2030 and will attempt to make the entire country carbon neutral by 2045.

For this reason, it is reasonable to expect green tech stocks to surge in the future. This is due to the fact that a rising number of companies will be looking towards renewable energy sources as the deadlines for net-zero commitments draw nearer.

Herculano believes green tech stocks are being oversold by investors. This is driving the price even lower and creating a great opportunity to buy.

How to invest in green tech stocks

Before investing in green tech stocks, it is important to understand that any investments will put your capital at risk. While we seek to share the opinions of knowledgeable industry professionals, it’s a good idea to conduct your own research and seek opinions from multiple sources before making a decision about an investment.

If you are interested in adding green tech stocks to your portfolio, you can find them on most reputable trading platforms. Green-tech stocks are typically found under ‘renewable energy’ or ‘technology’ stock categories. You can also search each individual stock by name.

If you want to learn more about how to invest in stocks, take a look at our beginners’ guide to investing in the stock market.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be considered so you should consider taking independent financial advice.

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