Citi thinks there's a new era for green stocks. Here's why
In a note from Citi, US equity strategist Drew Pettit claims the market will be entering a new era of green investing as the Federal Reserve begins to lower interest rates. As interest rates lower, the fortunes for infrastructure for clean energy could rise.
Pettit joined Market Domination to give insight into green investing and why it may be a new era for green stocks moving forward.
"So lower rates should help kind of green and clean again... but I do think longer term we actually see a fundamental inflection in these stocks where growth should re-accelerate and growth should outpace that of the broader market. So short-term catalysts to get us back in, longer-term catalysts for some sustainability of performance of these names," claims Pettit.
Pettit believes industrial sector will certainly have a part to play in this new era: "I actually think industrials play a huge part of the green transition. So when you think about all of the processes to make the things that we use every day, we need to change manufacturing processes. We need to make those processes better so we can use our resources effectively. So industrials are a massive part of the green revolution."
For more expert insight and the latest market action, click here to watch this full episode of Market Domination.
This post was written by Nicholas Jacobino
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