Investing in sustainable energy is a good reminder that the economy, more than politics, is a better predictor of stock performance. In 2021, renewable energy stocks surged on expectations of favorable treatment from the Biden administration. However, that growth was pushed back by the reality of higher interest rates and slower economic activity.
An opposite story is occurring in 2025. At the start of the year, sustainable investments were under pressure. Data from Morningstar shows that outflows to global sustainable energy funds hit a record of $11.8 billion at the beginning of the Trump administration.
