What do you make of investor’s reaction to this bill? I was surprised how many of these companies saw their stock go up. I know part of that was the tariff news on Monday. But it seems like investors either:
1/ don’t appreciate how bad some of these provisions truly are (e.g. foreign entity poison pill)
2/ don’t think they will survive House negotiations and the Senate.
3/ think the bill was much better than initial expectations.
Agree, almost my entire climate tech index was up over the last 7 days. I think 80% of that is tariffs (most of these companies are very exposed to China supply chain risk), and 20% is this bill not being as bad as expected. The wind and solar bonus staying was a positive surprise to me. The FEOC devil will be in the details, there are ways to implement it that are workable, which is why I think it will stay (the Senate can say oh it won't be implemented like that, and then we'll see what actually happens). The only thing that seems not priced in right now is ending transferability, and that's a wait and see with the Senate.
That's interesting because markets are basically saying that the tariff impact/risk is greater than the IRA political risk. I guess tariffs are immediate and IRA risk is in the future. But I wouldn't have thought that tariffs would be a bigger deal than the loss/dilution of a massive clean energy policy.
What do you make of investor’s reaction to this bill? I was surprised how many of these companies saw their stock go up. I know part of that was the tariff news on Monday. But it seems like investors either:
1/ don’t appreciate how bad some of these provisions truly are (e.g. foreign entity poison pill)
2/ don’t think they will survive House negotiations and the Senate.
3/ think the bill was much better than initial expectations.
Agree, almost my entire climate tech index was up over the last 7 days. I think 80% of that is tariffs (most of these companies are very exposed to China supply chain risk), and 20% is this bill not being as bad as expected. The wind and solar bonus staying was a positive surprise to me. The FEOC devil will be in the details, there are ways to implement it that are workable, which is why I think it will stay (the Senate can say oh it won't be implemented like that, and then we'll see what actually happens). The only thing that seems not priced in right now is ending transferability, and that's a wait and see with the Senate.
That's interesting because markets are basically saying that the tariff impact/risk is greater than the IRA political risk. I guess tariffs are immediate and IRA risk is in the future. But I wouldn't have thought that tariffs would be a bigger deal than the loss/dilution of a massive clean energy policy.