Friday, February 14, 2014

Goes in January? What is the retreat in green investment funds

Friday, February 14, 2014
Alternative energy funds and ETFs have withdrawn seen 2013 of fantastic profits from some year. There is a saying in the investment world, that "as goes January, so the year goes." It's time to save this sector or stocks in General? Maybe, but wise long-term alternative energy should investors avoid rash steps that at this point.

Alternative energy fund yields

Mutual funds are around 4% in the average year-to-date and are basically flat for the last three months. Nevertheless, alternative energies are mutual funds by 22.7 percent last year, and not a single fund is trading in the red.

By far, the best performance is in the last 12 months firsthand alternative energy (ALTEX), up to 75 percent for the year. Who owns most of the stock funds are the high flying solar industry, including SolarCity Corp (SCTY), SunPower Corporation (SPWR) and GT Advanced Technologies Inc (GTAT).

Exchange-traded funds are on average just 0.9 percent. If the outlier iPath global carbon ETN (GRN) is removed, ETFs are 1.6 percent but down rather. On the other hand, the 17 alternative energy of ETFs scored a strong result last year to 34 percent in the average. Not surprisingly, two solar ETFs were the best one year yields - Guggenheim solar (TAN) and market vectors solar energy ETF (KWT).

The lowest funds on an annual basis are global X lithium ETF (LIT) and market vectors rare earth/strategic metals (REMX). Reflect these two funds the dip in raw materials markets, to live mainly in developing countries. Investors have soured on emerging markets in recent years betting on lower growth in China. The logic goes as China manufacturer in the world, and therefore the largest market for these materials, a slowdown in China will lead an economic burden for this sector.

Where we see opportunity

A Fund where we see opportunity, is Allianz RCM Global water (AWTAX), has risen to rank 1. This Fund for recycling has decent is a relatively low risk. His stock fundamentals are strong, and it has moderate management fees. AWTAX is relatively small in relation to its annual price class, commercial, so this looks like a good entry point.

iPath global carbon ETN (GRN), the Barclays global carbon index followed, finally had a lift. Profits began in April 2013 occur, then accelerates shortly after new year's. This reflects the fact so carbon markets from a ground dug crony. Despite these developments, it can take years before a viable CO2 market is emerging.

Goes in January?

Throwing so a closer look at the adage "as goes January, so goes the year." Is the S&P-500 to over 5 percent for the year so far is spooking investors. A brief look at the facts, but reminds me less reason to worry about than there slogan implies.

Look at historical data for the S - and P-500 back to 1950, there is a very high correlation of market direction for the month of January and the rest of the year. It was 70 percent of the time, when the market was in January at the time for this year, or if it was down in January for the year. The 45 years that there is a correlation, 32 of them were in one market and only 13 had a lower correlation. So the trend much more for one until January as from January. Is more interesting however, that as the S - and P-500 in January was low, it finished trading up for the year of 16 times. In other words, a from January a year forecast predicted several times that it later in the year. Although previous behavior to predict the future not always not too would I get forecast losses on the stock exchange in January down in 2014.

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Remember to consult a professional before important financial decisions with your investment.

This article originally appeared on the Roen financial report it Monte and was published with permission.

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