Chart of the Day - Wednesday, January 22nd, 2020

Today's Chart of the Day was shared on Twitter by Mike Zaccardi (@MikeZaccardi). The chart shows the two-year performance of various energy ETFs including, The Solar ETF ($TAN), the Global Wind Energy ETF ($FAN), the Low Carbon Energy ETF ($SMOG), the S&P 500 ETF ($SPY) and the Exploration & Production ETF ($XOP). Mike points out that Solar stocks ($TAN) have outperformed the rest of these Energy subsectors on both an absolute and relative basis, despite the tariffs that were imposed on solar panels two years ago. We often preach the value of ignoring the news and avoiding making decisions around headlines. This isn't because we think news never affects price. Instead, we believe that the news is often misleading, and we believe that it's easier to focus on price action rather than trying to predict how the news will impact a security. We've been bullish on solar stocks for almost a year now because they've been exhibiting relative strength vs. the broader market. We would've missed this entire trend had we let tariff news impact our analysis.