The Government passed the big, beautiful bill. Like every new bill, it has some positive and negative measures. Well, it depends on who you ask. Judging by just about every independent economic analysis, the bill basically transfers money from one group of people to another or from one industry to another. The overall impact is an addition of 3 to 5 trillion dollars to the budget deficit over the next few years.
There is one clear loser, however. This is the clean energy sector. The expedited rollback of renewable energy tax incentives will rattle the clean energy sector, potentially impacting most companies involved in alternative energy. For example, TAN (solar ETF) dropped 8% in one day right after the bill passed. While we believe clean energy is the future, it will be in a dog house for a while. Avoid those companies and ETFs. It will take a while for them to overcome those cuts and achieve self-sustainability.
Dennis
