Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Silver Bulls Will Be Handsomely Rewarded - 21st Sep 20
Fed Will Not Hike Rates For Years. Gold Should Like It - 21st Sep 20
US Financial Market Forecasts and Elliott Wave Analysis Resources - 21st Sep 20
How to Avoid Currency Exchange Risk during COVID - 21st Sep 20
Crude Oil – A Slight Move Higher Has Not Reversed The Bearish Trend - 20th Sep 20
Do This Instead Of Trying To Find The “Next Amazon” - 20th Sep 20
5 Significant Benefits of the MT4 Trading Platform for Forex Traders - 20th Sep 20
A Warning of Economic Collapse - 20th Sep 20
The Connection Between Stocks and the Economy is not What Most Investors Think - 19th Sep 20
A Virus So Deadly, The Government Has to Test You to See If You Have It - 19th Sep 20
Will Lagarde and Mnuchin Push Gold Higher? - 19th Sep 20
RTX 3080 Mania, Ebay Scalpers Crazy Prices £62,000 Trollers Insane Bids for a £649 GPU! - 19th Sep 20
A Greater Economic Depression For The 21st Century - 19th Sep 20
The United Floor in Stocks - 19th Sep 20
Mobile Gaming Market Trends And The Expected Future Developments - 19th Sep 20
The S&P 500 appears ready to correct, and that is a good thing - 18th Sep 20
It’s Go Time for Gold Price! Next Stop $2,250 - 18th Sep 20
Forget AMD RDNA2 and Buy Nvidia RTX 3080 FE GPU's NOW Before Price - 18th Sep 20
Best Back to School / University Black Face Masks Quick and Easy from Amazon - 18th Sep 20
3 Types of Loans to Buy an Existing Business - 18th Sep 20
How to tell Budgie Gender, Male or Female Sex for Young and Mature Parakeets - 18th Sep 20
Fasten Your Seatbelts Stock Market Make Or Break – Big Trends Ahead - 17th Sep 20
Peak Financialism And Post-Capitalist Economics - 17th Sep 20
Challenges of Working from Home - 17th Sep 20
Sheffield Heading for Coronavirus Lockdown as Covid Deaths Pass 432 - 17th Sep 20
What Does this Valuable Gold Miners Indicator Say Now? - 16th Sep 20
President Trump and Crimes Against Humanity - 16th Sep 20
Slow Economic Recovery from CoronaVirus Unlikely to Impede Strong Demand for Metals - 16th Sep 20
Why the Knives Are Out for Trump’s Fed Critic Judy Shelton - 16th Sep 20
Operation Moonshot: Get Ready for Millions of New COVAIDS Positives in the UK! - 16th Sep 20
Stock Market Approaching Correction Objective - 15th Sep 20
Look at This Big Reminder of Dot.com Stock Market Mania - 15th Sep 20
Three Key Principles for Successful Disruption Investors - 15th Sep 20
Billionaire Hedge Fund Manager Warns of 10% Inflation - 15th Sep 20
Gold Price Reaches $2,000 Amid Dollar Depreciation - 15th Sep 20
GLD, IAU Big Gold ETF Buying MIA - 14th Sep 20
Why Bill Gates Is Betting Millions on Synthetic Biology - 14th Sep 20
Stock Market SPY Expectations For The Rest Of September - 14th Sep 20
Gold Price Gann Angle Update - 14th Sep 20
Stock Market Recovery from the Sharp Correction Goes On - 14th Sep 20
Is this the End of Capitalism? - 13th Sep 20
The Silver Big Prize - 13th Sep 20
U.S. Shares Plunged. Is Gold Next? - 13th Sep 20
Why Are 7,500 Oil Barrels Floating on this London Lake? - 13th Sep 20
Sheffield 432 Covid-19 Deaths, Last City Centre Shop Before Next Lockdown - 13th Sep 20
Biden or Trump Will Keep The Money Spigots Open - 13th Sep 20
Gold And Silver Up, Down, Sideways, Up - 13th Sep 20
Does the Stock Market Really "See" the Future? - 12th Sept 20
Basel III and Gold, Silver and Platinum - 12th Sept 20
Tech Stocks FANG Index Nearing Critical Support – Could Breakout At Any Moment - 12th Sept 20
The Tech Stocks Quantum AI EXPLOSION is Coming! - 12th Sept 20
AMD Zen 3 Ryzen 4000 Questions Answered on Cores, Prices, Benchmarks and Threadripper Launch - 12th Sept 20
The Inflation Mega-trend is Going Hyper! - 11th Sep 20
Gold / Silver Ratio: Slowly I Toined… - 11th Sep 20
Stock Market Correction or Reversal? The Jury Isn't Out! - 11th Sep 20
Crude Oil – The Bearish Outlook Remains - 11th Sep 20
Crude Oil Breaks Lower – Sparking Fears Of Another Sub $30 Price Collapse - 11th Sep 20
Inflation by Fiat - 10th Sep 20
Unemployment Rate Drops. Will It Drag Gold Down? - 10th Sep 20
How Does The Global Economy Recover After This Global Pandemic? - 10th Sep 20
The Best Mobile Casino - 10th Sep 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

If Biden Wins, Solar Stocks Could Go Ballistic

Companies / Solar Energy Aug 19, 2020 - 03:19 PM GMT

By: John_Mauldin

Companies

By Justin Spittler : “We're not just going to tinker around the edges. We're going to make historic investments that will seize this moment in history.”

Presidential front-runner Joe Biden said this last month. He was talking about his blockbuster green energy spending plan. As you may have heard, Biden plans to spend $2 trillion on clean energy and infrastructure over four years if he becomes president.

That’s a staggering amount of money. The Trump administration currently allocates less than $100 billion per year to clean energy technology. So, we’re talking about a 20-fold surge in spending!

Biden also plans to end carbon emissions from power plants by 2035. It’s an ambitious goal. One that would require millions of solar panels, and tens of thousands of wind turbines.


Of course, you may think this is way too much money to spend on green energy. You may not think that climate change is a big deal. Or maybe you don’t think Biden should be America’s next president.

But you shouldn’t let your political views get in the way of big investment opportunities. That’s an expensive mistake many people make. Instead, I like to focus on the most likely outcomes, and invest accordingly.

And there’s no denying that Biden’s plan would turbocharge green energy stocks. We’re talking about $2 trillion, after all!

If a Fraction of that Money Goes to the Solar Industry, Solar Stocks Could Go Bananas  

The solar industry is still a relatively small market. It accounts for just 2% of the total electricity generated in the United States.

It’s also only about a $53 billion industry worldwide. But it’s growing like crazy. By 2026, the global solar industry is projected to be worth $223.3 billion. Of course, Biden isn’t a shoo-in. There’s a chance that Trump is our president for four more years. But the solar industry does not need the federal government’s support to thrive.

Residential solar installations hit a record high during the first quarter of this year. And last year, solar accounted for 40% of all new power capacity. Solar is going mainstream for a simple reason: It’s competitive with traditional energy sources.

The cost of solar energy has plunged 90% over the past decade. And the price of residential solar power is projected to fall another 17% over the next five years. Not only that, 28 states have set CO2 emission reduction targets, and 23 states have signed the US Climate Alliance pledge to reduce emissions by 28% by 2025.

The world’s biggest companies are also committed to green energy. Last month, Apple (AAPL) announced its plan to become “carbon neutral” across its entire business by 2030.

Microsoft (MSFT) is aiming to become carbon negative by 2030. By 2050, the tech giant plans to remove all carbon emitted by the company—either directly or by electrical consumption—since the company was founded in the 1970s!

Amazon (AMZN) is purchasing 100,000 electric vans from US-based electric vehicle maker Rivian. It plans to have all of them on the road by 2030. The retail giant also operates 91 solar and wind projects worldwide!

Green Energy Is One of the Biggest Megatrends on the Planet

And it’s still very much the early days. That’s why I’ve been pounding the table on hydrogen and solar stocks for months.

When it comes to solar stocks, the chart below tells you all you need to know. It shows the performance of the Invesco Solar ETF (TAN), which invests in a basket of solar stocks, since Trump took office in January 2017. It’s nearly tripled in value.

Compare that with the Energy Select Sector SPDR Fund (XLE), which invests in oil and gas stocks. It’s plummeted 51% over the same period.

The VanEck Vectors Coal ETF (KOL), which invests in coal stocks, has also been a terrible investment despite Trump’s best effort to rescue the dying industry. KOL has plummeted 44% since Trump took office in early 2017.

Solar stocks have left “dinosaur energy stocks” in the dust for the past four years. And I see them surging much higher in the months ahead, with or without Biden’s help.

To understand why, look at this chart. It shows the performance of TAN since the fund launched in 2008.

TAN has spent the past eight years “carving a bottom.” It’s now bumping up against a level that has already acted as a resistance twice before.

In other words, it’s likely only a matter of time before TAN rips through this key level. If that happens, solar stocks should be off to the races.

The Great Disruptors: 3 Breakthrough Stocks Set to Double Your Money"

Get our latest report where we reveal our three favorite stocks that will hand you 100% gains as they disrupt whole industries. Get your free copy here.

By Justin Spittler

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

John Mauldin Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules