Although promises of a reanimated coal industry ware thrown around, the smart money is still in clean energy, with indexes of solar and wind up by 20% so far.
18 Jul 2017 – Bloomberg
An index of 40 publicly-traded solar companies, wind-turbine component makers and others that benefit from reduced fossil fuel consumption is up 20 percent this year. That’s more than double the S&P 500’s 9.8 percent gain. And better than the 8.3 percent rise by an index of leading coal companies.
The eco-friendly stock rally — which comes as oil and natural gas-focused shares have dipped — stems from a constellation of factors, including a Nevada law to boost rooftop solar, China’s mass-transit policy and optimism that Elon Musk’s Tesla Inc. might deliver its Model 3 sedan on time. In short, Trump’s pro-fossil fuel agenda hasn’t damaged investor support for clean energy.
“Nothing dreadful has happened, and these companies continue to execute,” said Jenny Chase, Bloomberg New Energy Finance’s lead solar analyst.
As clean-energy stocks climb, investors have pumped more money into wind and solar. U.S. investments totaled $14.7 billion during April, May and June, up 51 percent from the previous quarter to mark the highest level since 2015, according to Bloomberg New Energy Finance. European investments rose 10 percent, to $8.8 billion.
“We are seeing catalysts for these markets driven by the fact that people increasingly realize clean energy is more profitable than conventional energy,” said David Richardson, an executive director at Impax Asset Management, which focuses on s