Buy Solar

Enphase (ENPH) sure has put a lot of sunshine in my portfolio these past few months. Recently Wendy posted about the “Golden Cross on the SPX.” ENPH had its Golden Cross in mid July! Like me, ENPH does not seem to care what The Fed is doing.

https://bigcharts.marketwatch.com/advchart/frames/frames.asp…

Beth Kindig used to be a favorite analyst at Saul’s. I don’t know if she still is. She has a new article on Seeking Alpha.

Solar Stocks Lead The Market This Year As Energy Crisis Heats Up

Summary

• The first catalyst for solar stocks is the Inflation Reduction Act which is expected to allocate $369 billion to energy security and climate change.

• The second catalyst is the energy crisis in Europe. The price of natural gas is rising, which will become a tailwind for alternative forms of energy.

• On top of the solar sector’s excellent performance over the past few months, we foresee its leadership position continuing due to these two catalysts.

https://seekingalpha.com/article/4540953-solar-stocks-lead-m…

The Captain

On Reading Investing Articles

This bit of intelligence I learned a very long time ago. When articles name a bunch of companies the leader tends to be the first one named. This rhymes with the concept of ladders, we only have so much room for each category so we tend to remember the top rung. The simple test is to ask people this kind of question, “Who was the first to fly solo across the Atlantic.” More than likely they will know the answer. Now ask who was second. Clueless!

From the article:

Solar energy stocks have outperformed the S&P 500 Index YTD with the most noticeable divergence June-August. The S&P 500 index is down 17% YTD and Nasdaq-100 index is down 26%, yet solar stocks are leading the tech industry as Enphase Energy (ENPH) is up 72%, Maxeon Solar Technologies (MAXN) is up 62%, and First Solar (FSLR) is up 56% YTD.

Buy the sector leader, they lead for good reason.

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