Alternative Energy and ETFs: The Next Bubble? | ETF Trends

In the last decade, the spotlight has gone from tech, to real estate and then to oil, so will alternative energy the next hot spot for exchange traded fund (ETF) investors to flock to?

Chris Farrell, the economics correspondent for Marketplace, says that it’s indeed going to be the case. He cites several reasons including: 1) speculators are always looking for new places to put their money and 2) if oil continues to head south, they’re going to be on the hunt.

Alternative energy has a particularly good reason for a boom, because it’s a global phenomenon from which nearly anyone, anywhere can benefit.

Farrell thanks speculators, in fact, because they take the risks. Most investors don’t know which technologies will bring about alternative energy, but speculators will do the gambling and create the bubble. Naturally, bubbles burst, and that’s as good a reason as any to take the money you’ve made and run once your holding falls 8% off its high or the 200-day moving average, whichever comes first.