One energy stock that’s gone up big PLUS the Great Corporate Debt Bubble

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With energy and oil prices and stocks having crashed in the last couple years, do you realize that in First Solar FSLR we own the one energy stock that might be just about one of only a handful out of hundreds that is up nicely over the last few years? Our timing in flipping from Bear/Short to Bull/Long in the alternative energy sector in 2013 when company after company was going bankrupt and then buying FSLR, the solar stock with the single strongest balance sheet and prospects, has been a boon for us. I’m still expect there’s some long-term upside in First Solar in coming years regardless of what happens with the price of oil and energy, just as there has been for the last two and a half years while we’ve owned it as oil and energy prices and stocks crashed.

Meanwhile, knowing that interest rates for corporations being artificially kept at historic lows and after looking at all those hundreds of billions of dollars on the giant energy companies up and down the supply chain, that I mentioned yesterday, I am starting to do more work on the risks of the The “Great Corporate Debt Bubble.” Which is real and as @RobertMarcin notes is a huge risk out there to the broader economy and the stock market and the financial system itself. And to be sure, the Great Corporate Debt Bubble is popping right now, at least in the energy sector. I continue to avoid all levered balance sheets too and boy does this part of the energy cycle and the collapse of these highly levered energy companies remind me that avoiding ugly balance sheets is always key.

See you in Live Q&A Chat at 2pm. Be there or be square.