Now Is The Time To Believe In Solar Energy

Matt Thalman - INO.com Contributor - ETFs - Solar Energy


On May 9th the California Energy Commission approved a proposal to require most new homes built after January 1st, 2020 will be required to have solar panels installed on them. The new regulations will undoubtedly be a boom for an industry that had a rough time in 2017, the first-year installations declined.

The new ruling piggy-backs on a 2013 requirement that all new homes be “solar-ready.” The solar-ready rule indicated that new homes be built with a certain amount of roof space so that a future homeowner had the option to add solar panels at a later date.

The most recent rule will no longer give homeowners or builders the option to forgo the upfront cost of solar panels, which some estimate will be high as $30,000 per home. The most persuasive arguments against the new rule are just that, the additional costs of the home. California is by most measures already in a housing crisis regarding costs; many believe this will only compound the problem.

But, that also leads to some excellent investment opportunities. The solar panel industry is going to see a massive, built-in installation base. In 2017 California saw over 53,000 single family homes built and most would agree that number needs to be higher in a state with an ever-growing population.

On a very conservative basis, that number will grow to 55,000 in 2020. It is currently estimated that only about 600,000 homes in California currently have solar panels. So, to think that number of easily more than double in a few years when all new homes are required to have solar power, it's clear the investment opportunity in solar is huge. And remember, this is just California we are talking about, other states such as Arizona and Florida, (parts of Miami already have) also could pass similar regulations.

So, how do you cash in on this opportunity? Continue reading "Now Is The Time To Believe In Solar Energy"

NASDAQ Hits Record High On Judges Ruling

Hello traders everywhere. The likes of Netflix Inc. (NFLX) and Time Warner Inc. (TWX) have propelled the NASDAQ (COMP) to record highs today hitting $7,748.96 in morning trading. Move higher comes after a federal judge approved the blockbuster merger between AT&T and Time Warner on Tuesday, blocking the government's effort to stop the $85.4 billion deal. This decision could unleash a wave of corporate takeovers.

The judge, Richard J. Leon of United States District Court in Washington, said the Justice Department had not proved that the telecom company's acquisition of Time Warner would lead to fewer choices for consumers and higher prices for television and internet services.

The merger would create a media and telecommunications powerhouse, reshaping the landscape of those industries. The combined company would have a library that includes HBO's hit "Game of Thrones" and channels like CNN, along with vast distribution reach through wireless and satellite television services across the country.

NASDAQ Hits Record High

On the other side, the S&P 500 and DOW are relatively unchanged on the day awaiting the announcement of the Federal Reserves interest rate hike decision at 2 pm EDT today. It's expected that Fed Chair Jerome Powell and his colleagues will announce a quarter-point increase in interest rates as the central bank seeks to normalize monetary policy with the economy showing signs of health. Continue reading "NASDAQ Hits Record High On Judges Ruling"

Don't Bet On Crises To Keep Bond Rates Lower

George Yacik - INO.com Contributor - Fed & Interest Rates - Bond Rates


Despite the recent dip in the 10-year Treasury note yield back below 3%, don’t count on it staying there. Lately, it seems, the only thing keeping the rate below that level is some sort of international crisis – Italy, North Korea, trade wars, etc. But the basic fundamentals determining that rate – economic growth and supply and demand, in other words – are calling for even higher rates, well above 3%.

On the supply side, more Treasury debt is coming to market all the time, like an incoming tide in the Pacific Ocean. On the demand side, there are fewer buyers – and I mean big buyers. More about that in a minute. At the same time, the economy is growing stronger, which by itself is going to put upward pressure on rates.

In other words, if you’re betting that the 10-year yield is going lower, or will stay around or below 3%, you’re really only holding it as a safe haven. Nothing wrong with that, lots of investors do that. But if you’re hoping to profit when something in the world goes wrong, you may be playing a losing game.

First the economy. Last week on CNBC’s Squawk Box, the gold dust twins, Warren Buffett and Jamie Dimon, tried to outdo themselves in how great the U.S. economy is performing. Continue reading "Don't Bet On Crises To Keep Bond Rates Lower"

Commodities: Sell In May And Go Away?

Aibek Burabayev - INO.com Contributor - Metals - Sell In May And Go Away


Last August I posted a chart analysis of one particular commodity market index as I spotted an interesting pattern. As time goes by, we can see how my outlook emerged and after almost a year the market reached another crucial milestone or better yet a decision point.

This index is called The Thomson Reuters/CoreCommodity CRB Index (CRB). It is the gauge of the commodities market, which is comprised of 19 commodities: Aluminum, Cocoa, Coffee, Copper, Corn, Cotton, Crude Oil, Gold, Heating Oil, Lean Hogs, Live Cattle, Natural Gas, Nickel, Orange Juice, Silver, Soybeans, Sugar, Unleaded Gas, and Wheat.

So, if you watch commodities market, then the two charts below could be of strong interest to you.

Chart 1. Thomson Reuters/Jefferies CRB Index Monthly: Failed At Resistance

Sell In May And Go Away
Chart courtesy of tradingview.com

Above is an update of the earlier chart. The risk/reward that time ($182) favored a long position as the upside target at the major top ($474) promised to cover risk extensively amid oversold market conditions. Continue reading "Commodities: Sell In May And Go Away?"

Bitcoin Delivers Sunday Surprise

Hello traders everywhere. The CME Bitcoin real-time index dropped over 10% on Sunday giving many cryptocurrency traders a Sunday surprise. The index traded as low as $6,643.58 before finally closing the day at $6,781.18. It's the first time since early April that Bitcoin has traded below the $7,000 level. However, it shouldn't come as a surprise after it's been trapped in a tight trading range between $7,000 and $7,800 since about mid-May.

Media reports will have you believe that the price drop is due to a hack on the South Korean exchange Coinrail, which was revealed Sunday, and renewed concerns regarding security at cryptocurrency exchanges. However, a significant move was expected anyway, as an extended period of consolidation or low volatility is often followed by a sharp move on either side and prices started falling Saturday, so the theft of ERC-20 tokens at a minor exchange seems an unlikely cause.

Bitcoin Delivers Sunday Surprise

Events To Keep In Mind This Week

Continue reading "Bitcoin Delivers Sunday Surprise"