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      Why Is Smart Money Betting Against Renewable Energy

      Why Is Smart Money Betting Against Renewable Energy

      1. Bloomberg: smart money is betting heavily against clean energy.
      2. According to Bloomberg, money managers have concluded that many green investments will not yield returns as quick or as high as they had hoped.
      3. In the pivotal solar sector, in the third quarter, net shorts outnumbered net longs for 77% of companies.

      Last week, we reported that bearish sentiment in oil markets had sunk to levels last seen during the 2008 global financial crisis. According to commodity analysts at Standard Chartered, the main themes currently dominating oil markets are expectations of macroeconomic hard landings, extreme oil demand weakness, and persistent fears of oversupplied oil markets in 2025.

      However, a recent Bloomberg analysis has revealed a more surprising finding: smart money is betting heavily against clean energy while going long fossil fuels. To wit, the $5 trillion hedge fund industry is net long oil, gas and coal but net short batteries, solar, electric vehicles and hydrogen. According to Bloomberg, money managers have concluded that many green investments will not yield returns as quick or as high as they had hoped.

      The hedge funds’ bets have been driving a wave of momentum against renewable energy, with the S&P Global Clean Energy Index having lost almost 60% of its value since its 2021 peak, while the S&P Global Oil Index as well as the broad market S&P 500 Index have soared more than 50%.  Read more