One side effect of an oil price pullback could be a decline in solar exchange traded funds (ETFs), but doesn’t seem to be happening yet.
Oil closed at $127.35 a barrel on Friday after rising above $135 the week before. Market Vectors Solar (KWT) shot up 6.6% on Friday, while Claymore/Mac Solar Energy (TAN) went up 5.1%.
John Spence for Market Watch cites Shaeffer’s Investment Research as saying that pullbacks in the price of oil could put pressure on the solar sector. After all, the high price of energy is one of the major factors in the search for alternative forms. With any luck, perhaps concerns about global warming or fear of another situation like the one we’re currently in will keep interest in the solar sector alive.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.