ব্যঙ্গাত্মক বর্ণনা এবং ফরেক্সের প্রবেশদ্বার বিন্যাস
Green stocks to rise amid Fed rate cut
According to analysts at Citi Research, clean energy has become the Achilles' heel for many investors. They placed their bets on this sector, expecting easy money. However, at some point, things went wrong. As a result, they had to revise their strategies. Nevertheless, in the near future, the Fed’s policy shift and rate cuts could boost green stocks.
The company representatives state that many traders, even those who are not regular buyers of green stocks, now see opportunities for growth and profit amid the ongoing investment trends.
Corporate interest in green stocks is gaining momentum. Citi Research emphasizes that this topic is gradually becoming part of everyday business practice, which could potentially expand opportunities in this segment.
Changes in the Fed’s monetary policy and subsequent rate cuts may provide a tailwind for current performance. Recent economic indicators suggest that the Democratic president could be more favorable to the green agenda, but there are some nuances. While Democrats support clean tech, the costs in this sector could rise significantly. Republicans, on the other hand, focus on tax policies and the Inflation Reduction Act (IRA), which also affect the overall situation.
In the medium term, rate cuts and political factors are unlikely to be a magic bullet for green stocks, according to the bank. Citi Research concludes that in such a situation, investors should focus on three key fundamentals: positive cash flow, noticeable profitability, and accelerated growth in sales. The most attractive sectors for investors are clean water, energy efficiency, and nuclear power. However, electric vehicles and energy storage might face some challenges.
প্রকাশিত 11 September 2024
© InstaFintech Group
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© InstaFintech Group
