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  #1  
Old 12-25-2017,
5rJHpj7i27 5rJHpj7i27 is offline
 
Join Date: May 2017
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Default Wind & Solar... what happened?

Was looking over a few watchlists I put together years ago and it appears the solar and wind sector have performed abysmally in the second half of this year.

Given a higher than usual level of risk inherent in the market with the European sovereign debt situation in 2011 I have not paid much attention to high beta flyers like wind and solar. I'm hoping someone can give me the scoop on why they're down so much this year.

It used to be these traded along with oil. As crude oil prices went higher so did alternative energy plays like wind and solar. Is the horrible performance of this sector simply a reflection of Europe and perhaps cut backs to government subsidies since Europe is the largest market for these two alternative energy mediums? Or, is there something else I'm missing?
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  #2  
Old 12-26-2017,
5a3Y55WTdt 5a3Y55WTdt is offline
 
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My very non-technical analysis: I think, in America at least, alternative energy sources won't really gain wide acceptance until there is an ongoing catalyst in energy prices that it puts a cramp in most of America's daily lifestyle..... Gas prices going so high and staying there so long that soccer mom has to quit getting her Starbucks latte and actually has to make a pot of Folgers at home, after she has had to trade in her Tahoe or Suburban for a Civic and pile her 2 kids and their friends in the backseat.....how many people do you know who are going to go out right now and take the time and money to get solar panels on their house or a windmill in their yard. I don't know any. While I'm not against developing alternative energy sources I just don't buy the story that it is the next big wave in energy, at least not yet. Fossil fuels are just too convenient for most right now.
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  #3  
Old 12-28-2017,
474rCaHods 474rCaHods is offline
 
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I can't disagree w/ Europe, as you said. I can't think of a technical reason as to why the prices have declined so fast so quickly in comparison to the rest of the market. Maybe people are growing weary of waiting for the industry to take off and are taking money out of that sector.
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  #4  
Old 12-29-2017,
2ZyHUBCQZj 2ZyHUBCQZj is offline
 
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That's entirely possible. The crowded trade since October's sell off has been dividend payers. The piss poor yield environment in fied-income only fuels the rotation into dividend payers. Perhaps the rudimentary nature of the alt energy industry which of course means these equities most likely don't pay dividends played a part in rotation out of the sector.
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