Green Energy is Still in the Red

Today’s chart shows our “green energy” advice is still steering folks in the right direction…  
 
Over the years, we’ve highlighted many times that knowing what NOT to invest in is just as important as knowing what TO invest in. This statement often precedes commentary on clean energy stocks. Most clean energy firms are such terrible businesses that we say they are “perfectly hedged.” They are able to lose money in both good and bad economic times. Their stocks are able to stink in both bull and bear markets.#-ad_banner-#
 
One of the highest profile plays here is the PowerShares Clean Energy Fund (PBW). As an easy, “one click” way to go long solar, wind, and various other clean energy companies, this fund has drawn in hundreds of millions of investor dollars over the years.  
 
As you can see from today’s chart, those investment dollars aren’t being treated very well. While the broad market has roared to life since October and sent many sectors to fresh 52-week highs, PBW’s “perfectly hedged” attributes have left it unchanged in the same time period. If only solar energy didn’t have that problem called “night!”