Thursday, January 7, 2016

Post Election?

I have noticed the strength in solar, most notably FSLR. As a general rule solar depends on high hydrocarbon prices to maintain viability as an industry despite gains in the efficiency of the solar technology. The industry still depends on tax breaks and support from government.

But solar has been strong, relatively, lately during this latest general market selloff and during the last year of precipitous declines in oil and gas prices.

The market may be of the mind that solar has a future despite the gloomy outlook for petroleum energy. This may be due to political factors. It looks like the Democrats have the best shot for taking the presidency in 2016, and may make gains in Congress. And solar has always been a favorite of progressive voters.

Another thing that may happen if Democrats win may be the long awaited national investment in infrastructure. Cement and steel come to mind as investments at this time. Steel in particular has remained resilient despite China's precarious position.

Time will tell. But a massive infrastructure investment by the U.S. would take a lot of the slack out of world markets, put Americans to work, and increase the velocity of money.

Lots of 'ifs' there....

Look at Brazil as well. Enough is enough..... 


control risk,

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