The Worst Investment in the world?
Things just keep getting worse for clean energy stocks… the firms we often say are, “perfectly hedged.”
Clean energy stocks are popular with novice investors. After all, they often have wonderful “stories.” But most of them are such terrible businesses, we can say they are “perfectly hedged.” They are able to lose money in both good times and bad. Their stocks are able to sink in both bull and bear markets. Despite this reality, the popular clean energy fund (PBW) has attracted hundreds of millions of investment dollars.
#-ad_banner-#The past few months have confirmed why we encourage you to shun conventional clean energy stocks… and stick to top dividend-payers that sell “the basics,” like Johnson & Johnson and Philip Morris International.
One confirmation is the ridiculous Solyndra scandal… and how the U.S. government threw more than $500 million in taxpayer money down a rat hole. The second confirmation is the chart you see below. It displays the past year’s performance of PBW (red line) versus the performance of “basics” leaders Philip Morris (blue line) and Johnson & Johnson (black line). As you can see, clean energy is a loser. The “basics” are winners.