I've always found it funny how the markets overreact sometimes. It can wipe you out with the most immaterial shred of news and it can turn you into bloody Croesus just on whispers and rumors.
And the past few days have been no exception.
With the media focused on Japan's ongoing nuclear situation; here they come, suddenly in praise of the sun sending solar stocks rising based on… I dunno… That Japan and the rest of the world will be switching to solar power now?
Not in my view.
This interpretation of events just astounds me, while I love the idea of clean energy, fact of the matter is any significant applications of it due to Japan is just highly unlikely. France for instance has been using nuclear power for the greater part of its needs since forever, even after Chernobyl. Merkel suspending the extension of Germany's nuclear plants doesn't mean anything (read: politics) and let's face it, at this point, they all have bigger problems to throw their money at than switching energy sources.
The other argument for solar's rise is that the earthquake has disrupted the polysilicon supply, of which the Japanese manufacture 10% of and this was seen as a boon for the other suppliers.
Well, this does hold some weight. But then again, going forward costs will rise and margins will deteriorate as supply tightens even further. Plus they haven't exactly been selling like hotcakes so it's not exactly a sound thesis. But I've been wrong before.
Are there any solar bulls on WSO?
Curious what your thoughts are on this.
Will this be the advent of solar power?
Am I wrong in thinking that nuclear energy is here to stay?
I wonder how this will play out, so far it looks like drunken sun worship to me.