To kick-start MoneyMorning this year, I’m going to share two beaten-down sectors, you should keep an eye on. Thanks to several upcoming positive developments, they could experience a big revival in 2025. And hopefully at the same time, provide great money-making opportunities for us… Let’s take a look.
2025 sectors to watch #1: Green Energy out, Fossil Fuels in?
Some of the world’s biggest banks – Citi, Bank of America and Morgan Stanley – rang in 2025 by announcing their departure from the Net-Zero Banking Alliance (NZBA). This follows the exit of Wells Fargo and Goldman Sachs in December.
The NZBA is a voluntary coalition, which aligns banks’ financing activities with the 2050 net-zero target.
What the departure means, is banks are no longer “forced” to focus solely on financing green energy projects. They now have the freedom to choose to invest where the biggest profits and benefits lie. If that means fossil fuels such as coal, gas and oil, then so be it.
The reality is major economies cannot grow using just renewables. And they’re certainly insufficient to tackle the growing global electricity consumption. Demand for power is rising faster than renewables such as solar, wind and battery storage can supply.
That’s why I believe fossil fuels will make a comeback in 2025 – particularly the beaten-down coal sector.
According to the latest forecast from the IEA, global demand for coal will hit fresh records every year through at least 2027. And who knows, maybe for longer. After all, the IEA has revised its coal demand forecasts upwards over the past five years.
What’s more, fossil fuel stocks trade on attractive prices, with tons of cash, and zero debt. So, this fossil fuel revival could be the perfect catalyst for a rebound in share prices.
Simply put – 2025 might be the year investors switch from expensive growth stocks to undervalued value stocks – such as those operating in the oil, coal and gas sectors.
2025 sectors to watch #2: My #1 contrarian sector for 2025!
Platinum!
Here’s why…
The growth of hybrid vehicles will continue to outperform the growth of electric vehicles (EVs).
Major carmakers such as Toyota and Volvo have already halted EV production plans and manufacturers like, Ford, Toyota and Stellantis have promoted their hybrid plans.
And the plus for platinum is hybrid cars use catalytic converters made from platinum. On average, hybrid’s use 10%-15% more platinum than ICE vehicles.
It will also benefit carmakers as hybrids generate higher margins than EVs.
This newfound demand for platinum comes at a time when platinum supply deficit is rapidly worsening. So, it would not surprise me to see platinum prices and stocks rebound this year.
If you’re wanting to get started building a portfolio of stocks this year then be sure to get signed up to a service that can help you make the best decisions…
Each one of our subscription services always kicks off with their top stocks to start your portfolio… so depending on whether you want capital growth, income or an offshore portfolio in trending stocks, we’ve got you covered… Just take a look here to learn more about each service.
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