Biden’s Move to Ramp Up Solar Energy Creates Your Next Profit Play
Knowingly or not, President Biden has just set up what I believe to be solar’s next big run.
Over the weekend, Biden decided by executive order to incorporate the Defense Production Act to increase solar panel production in the United States. Tariffs on foreign solar equipment have been suspended, some for two years, to ensure domestic manufacturers have what they need to produce more panels faster.
Two years of tariff relief and soaring oil and gas prices have created a new age for solar stocks. Some have already jumped with the news of Biden’s decision, and the best stocks (like the one I’m recommending today) will only climb higher.
We could be taking a neat 30% gain or more to the bank, so…
Watch today’s video to learn more about today’s play.
06/07/2022 Take It to the Bank Tuesday Transcript
Hey everybody. Shah Gilani coming to you with your Take It to the Bank Tuesday, were I recommend what you should do with $100 today – as in, right now.
You always want to be in something that’s hot, don’t you? We do. I do. You do… Every does, so what’s hot today? Solar. Solar-everything is hot today.
Why is solar jumping through the roof – solar stocks in particular, popping right, left, and center? Because over the weekend, President Biden decided, by executive order, he was going to incorporate the Defense Production Act and allow importation of previously highly tariffed foreign solar panels and equipment to make solar panels.
Why? Because he wants to ramp up domestic production of solar panels.
Some of the places where tariffs were slapped on are now getting a two-year reprieve, so U.S. manufacturers can import solar panels and equipment from some of these formally restricted areas and help manufacture domestically – causing pretty much everything in solar to pop.
Now, it’s Monday as I’m recording this for you – close to one o’clock in the afternoon ET. Markets are sloppy for sure. Up big, but then kind of giving back a lot of that… Don’t know how we’re gonna close, but I’ll tell you one thing – solar stocks are hot today. They’re probably all gonna close close to their higher of the day because I think solar is going to have a good run.
I think, for your $100s today, you should buy a solar stock and ride it higher. Which one? That’s the question, because there are a lot of… Well, some of them look terrible, in my opinion. Negative profit margins, or shorted at infinitum.
So, what do you do? Which one?
How about one that encompasses the best of all solar companies, including companies with very high profit margins?
Here’s what you do. Buy the Invesco Solar ETF (TAN) – an easy one to remember. When you’re thinking sun, you’re thinking solar, you’re thinking TAN, and… Well, you think $100.
The ETF has come down nicely, making now a pretty opportunistic entry point for you. It’s trading around $77 dollars today. Now, this stock saw a high of $101 back in November of last year. Before that, it got up to $126.
Today, it’s at $77 and I see it getting back to $100 very easily. That’s a very pretty little 30% plus gain depending on where you get in. And I see TAN going back and making new highs because solar is gonna be hot for at least two years (and probably a lot longer). Solar’s time has come.
With fossil fuel prices reaching the sky and unlikely to come back down, solar is going to be hot permanently as an alternative. So, buy $100-worth of TAN and ride it back to it’s 2021 highs and beyond over the next two years – the tariff relief period Biden is offering.
Catch you next week.
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