The FED has already mentioned that it plans to cut interest rates slowly.

2024. 3. 1. 06:51U.S. Economic Stock Market Outlook

반응형

I like the slower tempo: lower interest rates

The FED has already mentioned that it plans to cut interest rates slowly.
This should sound like sweet words to bullies.

When interest rate cuts are slow,
The S&P 500 usually rises in the first year

Because I've already done it! (1984, 1995)

We cut interest rates more than four times a year
What a fast-tempo cycle means is
It's a signal that something is going very wrong. (2001, 2007)

In a rate-cutting cycle, growth stocks typically yield higher than value stocks,
This is usually the case in slow cycles.

Moderate economic growth is positive for stocks.
Because one thing is, there's no reason for the economy to expand rapidly and grow,
Second, growth stocks are more cycle-affected.

Large-cap stocks are also more profitable at the start of the cut,
Small-cap stocks are more dominant in the second half.

Smaller stocks also cycle more,
Once interest rates have been cut enough,
That's because we have an environment where it's going to rise significantly again."We need to get rid of bureaucracy, we need more skilled labor, and we need to modify incentives."

The price of solar power seems to be stimulating the demand for residential solar power in earnest, as the price of solar power has passed grid parity and is now halfway there!

Australia, China, and Germany have already caused explosive installations as the cost of installing residential solar power is lower than that of large solar power, but some argue that the problems of making housing expensive should be solved in the United States!

Since housing has essentially no grid costs and the wiring of the house is already in place, there is no reason for it to be more expensive than large solar power, which is far from power consumers, if the appropriate system is introduced!

=====

[JESSE PELTON]

Home solar power is expensive, but it doesn't have to be.

You can get more tax credits than Australians pay in total.

Americans are paying close to $4/W for solar. The taxpayer pays 30% of that ($1.2/W).

In Australia, we install solar at a cost of less than $1/W.

In Germany, you can DIY install 800 watts of balcony solar for just $0.35/W. That's 1/10 of what we pay for!

We try to make solar energy expensive and then make it cheaper by subsidizing it. But subsidies encourage inefficiency.

We subsidize costs. Other countries subsidize production. The solar industry is optimized for margins rather than volumes because we lower incentives for cost savings.

We're putting on tons of red tape that make solar connections difficult. Plugging in an 800W solar panel should be as easy as plugging in an 800W space heater. It's in Germany!

There is no technical reason why solar power cannot be cheaper in Germany than elsewhere. We need to get rid of bureaucracy, we need more skilled labor, and we need to modify incentives.

Home solar power can be cheaper than utility scale. Your home is already equipped with wiring, transformers, and installation structures.

If we leave it alone, people will make energy cheaper.

Home solar is expensive, but it doesn't have to be.

We pay more in tax credits than Australians pay in total.

American's are paying close to $4/W for solar. Taxpayers foot the bill for 30% of that ($1.2/W).

In Australia, they install solar for <$1/W.

In Germany, you can DIY 800 watts of balcony solar for just $0.35/W. 1/10 the cost we pay!

We make solar expensive and then subsidize it to try and make it cheap. But, our subsidies incentivize inefficiency.

We subsidize costs. Other countries subsidize production. We lower the incentive to reduce costs, so our solar industry optimizes for margin rather than volume.

We put up a bunch of red tape that makes it harder to connect solar. Plugging in an 800 W solar panel should be as easy as plugging in an 800 W space heater. It is in Germany!

There is no technical reason why solar can't be as cheap here as anywhere else. We need to cut red tape, we need more skilled labor, and we need to fix the incentives.

Home solar can be cheaper than utility scale. Your house already has wiring, a transformer, mounting structure, etc.

People will make energy cheap if we just let them.

반응형