Green Stocks Dec 8- It's a rout as Stocks Slump Yet Again

Green energy stocks, seen as high alpha stocks until not too recently, are facing their high beta moment, with volatility far higher than the broader market today. That is why we see stocks making a 4% drop the normal today, with some dropping even more. The meltdown indicates a clear breakdown of investor interest for now, and simply means existing investors staying put face a much longer period of recovery to get back their money. On the ground, as we have kept iterating, things have certainly not changed enough to warrant such a sell off, so this weakness is linked significantly to the broader pressure on the markets as well. 

Current prices, versus the prices a year back, would seem to indicate that everything that could go wrong has gone wrong, and to use a current example , as if green stocks too are having their Indigo moment. Except that, unlike the airline with a 65% market share that has let down all its customers  and admirers big time over the past week, we can't think of any green energy firm which has done anything remotely as disappointing. Yes, a few missed projections,  but not by a great margin. And in any case, as you can see in the YTD column, hardly enough to warrant the kind of drop they have seen. 

In this case, a non stop flow of regulations, draft or otherwise from the government has not helped matters, be it on setting efficiency thresholds for modules, or even the now denied move to instruct banks to exercise more care with financing solar module manufacturing funding.  

By now, the market meltdown, especially in small and midcaps is turning into a real worry for more than just the investors seeing their money evaporate, and a floor is certainly not far away if we go by the record over the past thirty years. Of course, going further back throws up data that indicates a steeper fall , but keep in mind that none of the triggers that existed or caused such a fall have come up so far. Does the market know somethin that is still buried underneath? We will know soon enough , though continued weakness even after a US fed cut if it happens this week, will be a sign of tough times ahead.

List of Green Stocks