Tuesday, December 11, 2012

Shorting Green Energy

A Business Insider post showed the remarkable 98% decline in the RENIXX since 2008, and index that tracks the world´s 30 largest companies in the renewable energy industry.

I found a green ETF, GEX,which is Market Vectors Global Alternative Energy fund. It's down about 85% since 2008.

Perhaps there's a very simple strategy here.


Mercury said...


"In less than a generation consumers have suddenly been saddled with low-flow shower-heads, "efficient" toilets, phosphorous-free "detergents," cold-water laundry soap even the Germans cannot be convinced to like, OLED displays, energy saving driers, water conserving washing machines, natural deodorant, acetone-free nail polish remover, suctionless vacuum cleaners,5 gag-inducing asthma inhalers,6 and poison-free pesticides. And if ever this pack of smelly, eye-strained, perspiring, make-up caked, wheezing, malaria-ridden, pissed-off consumers were ever to attempt to worm their way into their damp and dingy clothes and head on over to Capitol Hill to ask their elected representative how exactly they are saving 33% of their normal water consumption by spending twice as long in the shower and flushing the toilet six times in the morning, well they would have to stop to fill up two extra times on their way owing to the fact that their ethanol-poisoned gasoline (which is only viable to the extent it enjoys a nearly 50% subsidy) burns less efficiently and actually increases emissions besides."

JWO said...

I shorted Ballard Power Systems for years. I first looked at it as a possible long back when it was over $30. It seemed like it was so far from commercialization that it was bad bet. IMO it should not have been public yet. Some investors in it and other green companies seem to look at their investment as charity. I bought puts for years in did well. I would like to find another Ballard.

Anonymous said...

Oh yeah, shorting exploding bubbles is also one of my favourite strategies, right after buy low sell high.

Anonymous said...

Did you also teach us to buy anything that's gone down 90+%? I made money on financials that way.

Anonymous said...

There are two simple strategies here: either be a contrarian, or go with the trend.
But I know that Eric means "follow the stock trend" since he thinks that renewal-able energy is wishful thinking.