Will the Green Energy Stock Crash Continue Next Year?
Will the Green Energy Stock Crash Continue Next Year? | OilPrice.com
The latest Bloomberg MLIV Pulse survey of over 600 professional and retail investors revealed more than half of them anticipate that the downturn in 'green' energy stocks will persist into next year, posing challenges for some investors who have been trying to catch the 'falling knife.'
The survey, conducted Nov. 13-24 globally among Bloomberg News users on the Terminal, asked a series of questions about the green energy industry.
One of those questions asked Terminal users: With the iShares Global Clean Energy ETF down more than 30% this year and on track for its worst year since 2011. What do you think happens next?
Most respondents, 57% (or 353), expect the selloff to continue next year. And 43% (or 267) expect green stocks will find a near-term bottom, and now is the time to buy.
The ownership portfolio of the iShares Global Clean Energy ETF reveals that the fund is heavily invested in solar, wind, and hydrogen stocks, including SolarEdge, First Solar, Sunrun, Orsted, and Plug Power, which have been clubbed like a baby seal this year.
Waning demand and higher interest rates have been reasons for the green bubble's epic bursting.
Take a look at iShares Global Clean Energy ETF versus the Nasdaq... Whoops!
One of the ways the green bubble can avoid total extinction is for the Federal Reserve to reverse course on the interest rate hiking cycle. Swap traders believe this could occur as early as next summer.
This is one bubble the Biden administration might want to save. Otherwise, the implosion of these companies could derail it from hitting carbon-free targets in the years ahead.
ADVERTISEMENT
By Zerohedge
More Top Reads From Oilprice.com:
Traders Cut Bullish Bets on Oil Ahead of OPEC+ Meeting
Connecticut Plan to Ban Gasoline Cars Faces Opposition
Alberta Strikes Back at the Federal Government’s Energy Transition Plan
Related Knowledge Center: Climate diplomacy
Talks are well underway in preparation for the next major international meeting on climate change, 28th Conference of the Parties (COP28), scheduled to begin Nov. 30 in the United Arab Emirates.
Much like last year’s COP27, finances — specifically, aid to developing nations — will be at the center of conference deliberations.
The conference faces an even greater sense of urgency brought on by the Sept. 8, 2023, release of the first global stocktake, which calls for accelerated action to meet the goals set in the 2015 Paris Climate Agreement (COP21).
Climate diplomacy: COP 27 | Climate diplomacy: COP 28 | Climate diplomacy: COP 29