Here’s why renewable energy stocks seem a little gloomy

Dear Reader, Renewable energy stocks had a rough day last week as the market weighed the impact of higher interest rates in 2022. The sell-off was broad, and some of the biggest names in renewables dropped double digits. Enphase Energy, Bloom Energy, Maxeon Solar Technologies, and Daqo New Energy, at one point, were all down over 12% last week. This can all be tied back to those pesky rate increases initiated by the Federal Reserve. During a panel at the International Monetary Fund Debate on the Global Economy, Federal Reserve Chair Jerome Powell said a 50 basis-point rate increase is on the table for its May meeting. We all knew that rates would rise, but it seems the speed and rate of change is what's jarring to investors. For renewable energy companies, this is unwelcome news because most borrow money to fund projects and intend to pay back debt through revenue generated years or decades in the future. So, what now? While it's not good for renewable energy manufacturers or project developers to see rates go up, this isn't entirely surprising. The industry has been expecting rate increases, and investors have been selling renewable energy stocks in anticipation of higher rates impacting growth. What's worth noting is that higher rates will lead to higher required rates for electricity sold to consumers or utilities. But, we're seeing inflation like this across the board. While no one in renewable energy likes to see interest rates go up, this isn't something that presents a long-term concern. Long-term costs continue to decrease for wind, solar, and hydrogen energy sources. These tailwinds are more important than a short-term change in interest rates that investors were expecting, anyway. [image] Andrew Graham Editor, Silver Ridge Market Report P.S. Options Trading Secrets was written by Prosper Trading Academy CEO Scott Bauer, who used these very same trading strategies to go from a struggling baseball coach living paycheck-to-paycheck, to becoming a self-made millionaire. Every second that passes is one you're wasting by not preparing yourself, so secure your copy before this wild ride begins! [Get your copy of Options Trader Secrets](=) [image] 316 Media and Silver Ridge Market Report, is not giving individualized financial advice. Never invest more than you are willing to lose. 316 Media or Silver Ridge Market Report is not giving financial, investment, or stock advice. Our content is designed for generalized informational purposes only. If you have specific questions about investments or stocks you should consult a financial advisor. Articles, News, Or Other published materials are not always the views of 316 Media and/or Silver Ridge Market Report. If you feel you are receiving these emails in error please email Support@SilverRidgePro.com or click the unsubscribe button below. [Unsubscribe]( Silver Ridge Media 30 N Gould St, Ste R Ste R Sheridan, Wyoming 82801 United States