Opinions
Larry Berman CFA, CMT, CTA
BMO Clean Energy Index ETF
ZCLN-T
BUY
Nov 25, 2024
Stock price when the opinion was issued
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The ZCLN is very similar to the ICLN, but in Canadian dollars. Some of these ETFs have fallen over the last few months, but now are stabilizing and moving higher. One of the mega-trends. Watch that most stocks have already priced in positive moves, where the average PE of the stocks is about 52x. Be careful of valuations.
Yes. He's invested in this asset class. You could look at ZCLN, which has performed absolutely horribly over the last year. Green energy really did well in the first couple of years of the Biden administration, and then it didn't.
This one's getting cheap, on his radar to add to. Something may be cheap, but you always need a catalyst to get it going again. He needs to see how Trump behaves towards this sector over the next 6-12 months.
Likes ICLN long term (ZCLN is the Canadian version). Challenge is that under a climate-friendly Biden administration, it did poorly. You need to look at the 5-year chart to gain perspective. When Biden was elected, a lot of these names had a lot of excitement around them and the ETF really shot up. But there was no follow-through, so the chart looks like a multi-year low. It's certainly not going to improve under a Trump presidency.
Cheap relative to lots of things out there. When Trump won the nomination, a lot of solar/wind/clean energy stocks got absolutely crushed. If you're a long-term thinker, this is the time to buy, when there's blood in the streets.