President Biden’s first address before a joint session of Congress reflected his dedication to the renewable energy theme. Resulting policy could be positive for the ALPS Clean Energy ETF (ACES).
“US President Joe Biden made no bones in his first address to joint session of the US Congress about embracing the federal government’s role and higher taxes on the wealthiest Americans to help the nation deal with a looming climate crisis as it emerges from the worst economic crisis since the Great Depression and the worst pandemic in a decade,” notes IHS Markit.
Is ACES Building Momentum?
Dating back to the 2020 presidential campaign, ACES and other renewable energy exchange traded funds traded higher on Biden talk. Some of those gains were given back earlier this year as market participants realized that passage of the White House clean energy plan won’t come easily. Still, talk can be helpful, and the president delivered on that front.
“”These are the investments we make together, as one country, and that only government can make. Time and again, they propel us into the future,” Biden said in the speech.
Indeed, there are plenty of goodies in the Biden plan for renewable energy investors.
“The $14 billion that the White House has requested to fund climate-related programs at federal agencies in fiscal year 2022 is one option, while another option is to secure additional funds through the budget reconciliation process for the upcoming budget cycle. The latter approach was used by Democrats to push through a $1.9 trillion American Rescue Plan in late January, much to the chagrin of Republicans who could be seen smarting about it during the speech,” adds IHS Markit.
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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. 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.