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Bill Schmick | The Retired Investor: Will infrastructure spending boost clean energy stocks?


Renewable energy stocks were all the rage last year. This year, however, not so much, with clean energy funds taking hits of between 25 and 50 percent. Will President Joe Biden’s proposed $2.25 trillion infrastructure bill breathe new life into this sector?
Biden ran on a platform that included the build-out of an infrastructure plan that would “achieve net-zero emissions, economywide, by no later than 2050.” By the time of his November election, investors had bid up the clean energy sector — it includes everything from electric cars and clean water to solar and wind power — by over 200 percent in some cases.
New renewable energy exchange-traded funds (ETFs) and mutual funds were offered with names like “Tan” and “Fan” that were snapped up in anticipation that they could only go higher. Of course, like all mini-manias, prices failed to keep up with investors expectations. Markets moved on to buying “reopening trades” ....

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Double Stock-Market Bubble Brings Toil and (Perhaps) Trouble


Jan. 3, 2021 10:00 am ET
It is easy to spot bubbles. Too easy: They seem to be almost everywhere, almost all the time. Worse still for those of us who try to spot excess, much of the stuff that was labeled frothy in recent years went on to make big money in 2020 for those who bought into it anyway.
The question for investors: Were the bubble calls just wrong? Or are we in a new era of wild speculation driven by cheap money that must inevitably come to an end?
I lean toward the latter. But the stunning performance of so many bubble stocks this past year shows that even if this turns out to be right eventually, there is plenty of scope to be horribly wrong in the meantime. ....

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