The “Odervorland” wind energy park in the Oder-Spree district in Brandenburg.
Patrick Pleul | Image Alliance | Getty Images
Green transformation-related stocks have had hits this year so far, but an equity strategist will support a number of stocks over the long term.
It comes after a surge in green energy stocks in 2020 as oil and gas companies suffered from falling demand due to the pandemic. But the roles have reversed so far this year.
“We expect investors to begin calibrating their views on the green transformation and asking if they are paying too much for future growth,” said Peter Garnry, head of equity strategy at Saxo Bank, in a statement earlier this month the investors.
At that point, Saxo Bank’s “Green Transformation” basket of 40 stocks, which includes names like Tesla, was down 9.1% in 2021. That made him the worst performer among the equity themes of the Danish investment bank.
The general downward movement has continued, with the majority of green stocks falling last week as global markets faltered again on fears of inflation.
Nonetheless, Garnry remains bullish on the sector for a number of main reasons.