Why Alternative Energy Will Never Become Widespread (In Our Lifetime)
It has been an argument that has caught fire in recent years; whether or not countries around the world should make the switch to clean energy. There are two very opposed sides, as big oil has such a prominent impact on the global economy though environmentalists have been quick to point out their destruction of the surrounding environment. But while small strides have been made in recent decades, the fact is, alternative energy is still a minute portion of our energy production [see also 25 Ways To Invest In Alternative Energy].
Why The Solar ETF (KWT) Is Up 1,400% Today
No, you did not misread that headline. The Market Vectors Solar Energy ETF (KWT) is in fact up a whopping 1,425% on the day. But the reason why is not quite as glamorous as solar investors were hoping. The fund underwent a reverse 1-for-15 stock split today as its share price has been plummeting for well over a year now. “The solar ETF was down 74% for the year ended June 28, according to Morningstar” writes Tom Lydon. The fund has just $9.4 million in assets and has been struggling alongside the solar industry in the past year. KWT had lost over 29% in 2012 though it was still able to maintain a decent dividend yield (which will likely change given the massive split) [see also 25 Ways To Invest In Alternative Energy].
Three Reasons Why Solar Stocks Are Sinking
After enduring a miserable 2010, most investors were pleased to see solar hit the ground running this year, as a number of equities tied to this industry enjoyed double digit gains for several months. But as the year progressed, solar stocks quickly began to reverse their winning ways, dragging them even lower than where many had been at last year. These extreme losses come as a thorn in investors’ side, especially given that solar energy is arguably the fastest growing renewable energy in the world. Last year saw the overall industry grow by nearly 73%, leading to an average annual growth of 39% over the last decade [see also Company Spotlight: First Solar (FSLR)].
China Solar Power: Sunny Days Ahead For Solar ETFs?
This article originally appeared on ETFdb.com. After a rough 2010, alternative energy equities have been swinging back and forth all year long without establishing a clear trend. With 2011 being quite a busy year thus far, the only real attention that alternative energies have received has been quite negative, as many have called for the end of nuclear power after the tragedy that struck Japan. But now that the fears of nuclear power have slowly calmed, investors have looked to their rational side putting away unrealistic notions regarding the nuclear industry, especially given the numerous and devastating oil spills that the world has seen in the past two decades in contrast. Although most forms of alternative energy have stayed on the backburner for the majority of the year, news from China will bring solar power investments back into the limelight [see also Three Alternative Energy ETFs To Watch As Japan Drama Plays … See the full story here
