Toting up the results of the last amazing seven trading days, board markets and commodities are all down.
Not surprisingly, the high growth sustainable energy sector declined even more with all indices falling sharply with losers outnumbering gainer by 10 to 1. With their stock prices highly leveraged based on growth expectations, these stocks are experiencing their own type of “de-leveraging”.
Over the last 300 days the Solar index beta vs S&P 500 has been has been 1.0. In the last 30 days beta has increased to 1.2 as the index is increasing driven by broader market concerns. Until broad market volatility subsides, I expect the larger sustainable energy strategies to be strongly influenced by the overall financial picture. This means big swings in individual stocks and related indices.