If buying and selling stocks is something you get into, there is an emerging player in the energy sector to consider. Alternative energy is a hot topic in today's politics and pop culture. 'Going green' is a buzzword on the tip of many newscaster's tongues, and this could be a top market performer in the near future. There has been a recent shift towards producing renewable energy. Renewable energy sources include solar power, wind power, hydroelectric power, and biofuels. Advancing technology within these areas will lessen our dependence on fossil fuels, which are limited and will eventually run out. Governments are providing incentives in the form of tax write-offs and special discounts for individuals who promote energy efficiency. Many of the write-offs come by way of insulation, energy efficient windows and doors, and energy efficient air conditioners, furnaces, and water heaters. Solar power for homes will return a 30% credit from the government on installation costs for another 7 years. With these incentives, many alternative energy companies are on the verge of sizable profit margins. Finding the best alternative energy mutual funds on the market will require a little research. Look for companies that boast healthy yearly returns as well as quarterly dividends. This market sector has not been immune to the economic downturn, so be aware of companies that are struggling to fund research and development because of low capital. The future winners in this sector will be actively pursuing advancement in technology, such as reduced costs in mass production of solar panels. This will ultimately translate into more homes becoming powered by the sun with their panels, and profits. If you are not interested in mutual funds, try alternative energy ETFs. ETFs in this sector will still provide stability by sector diversification, but without the mutual fund maintenance fees. Either way, don't miss out on this sector's possible future gains - do your homework today!
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