The stocks are down 5%, it's not like investors got hit by a bolt from the blue*.
State support for solar energy should be cut by 30 percent in 2009, a senior member of Chancellor Angela Merkel's conservatives said on Thursday....MORE
May 5-Eurochumps, no more? Germany's CDU proposes reduction of subsidies for solar energy (FSLR)
April 22-Report: Chinese solar cells swamping subsidized German market
April 9-Speculated incentives cut may spur solar-power system demand in Germany
All together now (this version is from 11Feb08):
...So I don't leave the wrong impression, let me put it plainly- I'm pro alternative energy.
I am also a pro investor.
Right now, alt-energy isn't economically viable. So you are dependent on politicians.
My problem is, years ago I got this fiduciary thing into my head and now I can't seem to shake it.
Investing in rent-seeking businesses takes on an added layer of risk.
It is more dangerous than other investments and you must:
a) be aware of when you are in one and
b) monitor the political landscape continuously and very closely.
I'll close with my standard quote, from Simon Cameron.
From our post on biofuels, March '07:
Finally for investors in rent-seeking organizations there is the real risk that the politicians will change the rules. Heed the words of Sen. Simon Cameron (R&D!-Pa.):
"The honest politician is one who when he is bought, will stay bought."