Where to Invest $5,000 Right Now
Oil prices tumbled at the beginning of 2020 and remained weak for the rest of the year. As a result, all major oil and gas companies took a big hit, with Royal Dutch Shell and BP forced to slash their dividends. Oil was written off as dead by many, and investors poured funds into renewable energy stocks, resulting in their sky-high valuations.
Come 2021, and the narrative has shifted big time. Strengthening oil prices have attracted investors back to oil and gas stocks. The SPDR Energy Select Sector ETF is up more than 40% while the Invesco Solar ETF is down 27% so far this year. So, as an energy investor, what should you do? Let's take a look at the key factors that you should consider, as well as three top energy stocks to invest in right now.
Market sentiments aside, the fact is that focusing on only renewables or only fossil fuels is good neither for the world's energy needs, nor for your portfolio. Consider this: The U.S. Energy Information Administration projects renewables to surpass all other energy sources of global primary energy by 2050. The share of renewables is expected to rise to 28% in 2050 from 15% in 2018. But where will the remaining energy come from?
Source Fool.com
