Choppy waters ahead!
Solar stocks may be stuck in a malaise for the short term as demand in China wains, however, the higher efficiency transition will be the key driver of the industry longer term.
Solar stocks outperformed the broader market last month (5/7-6/1), the Guggenheim Solar ETF (TAN) rose 3.8% vs. the S&P 500 and Dow up 2.7% and 1.5%, respectively. Despite this, we expect volatility due to the new policy in China. On 5/31, China’s NEA released its ‘Solar Management Plan’, the update is more severe than expected. …
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