“On Dec. 5, First Solar (FSLR) — the ETF’s largest holding — provided 2018 guidance that topped the consensus estimates on earnings and met on revenue. Then on Dec. 11, a Baird analyst said the market has hit an inflection point that will continue to see long-term growth thanks to lower installation costs and advancements in technology,” reports IBD.
The clean energy sector found support under President Barack Obama as the administration pledged to fight against global warming and climate change through heavy subsidies into green technology. However, Trump, who called climate change a hoax perpetrated by China, pledged to cancel last year’s Paris climate agreement and remove Obama’s Clean Power Plan, could reverse years of supportive alternative energy policies.
TAN’s year-to-date performance is all the more impressive when considering oil prices are plunging. Previously, solar stocks have risen when oil prices do the same because expensive oil renews calls for cheaper energy alternatives. TAN has not finished higher on an annual basis since 2013.
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