Solar Stocks Rise as Oil Continues to Climb
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Solar stocks rose yesterday as crude oil prices hovered around $122 a barrel. According to Forbes, however, gains in solar stocks were more psychological than operational.
Even though oil accounts for 2% of electricity production in this country–a negligible amount–the high-flying solar sector rallied on the back of black-gold’s gains.
It’s more psychological than operational as the price of oil has no direct bearing on the price of electricity,” said Michael Carboy of Signal Hill Group. “What happens though is rising oil prices are equated to rising energy prices and solar gets a good tailwind as a result.”
According to the report, “that leap of reason gave solar stocks an even greater bounce than their oil counterparts,” which translated into solid gains for the solar stocks such as SunPower, Evergreen Solar, Trina Solar and Canadian Solar.
“The smart money is investing in alternative energy,” says Mike Burnick in the Offshore A-Letter.
“The market for alternative energy — including solar, wind, bio-fuels and fuel cells power — grew a whopping 40% last year alone! Alternative energy grew into a US$77 billion industry by the end of 2007, according to industry data from Clean Edge.
“But that’s just the tip of the iceberg. The alternative energy sector is set to explode into a $255 billion market within the next 10 years!”
Read on to learn the best ways to profit from the rise in solar stocks.