Technology Predictions 2010 (Part 2)

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CleanTech makes a comeback. But solar stays in the shadows

DTT TMT predicts mixed performance for the CleanTech⁶⁸ sector in 2010. After a near-collapse in the stock market value of the entire industry during the recent economic crisis, government stimulus and investor interest catalyzed a sharp recovery. However, not all areas are sharing equally in the bounty. The solar technology subsector will likely be outperformed by the broader CleanTech industry. Prices of solar equipment, tools, and raw materials will probably continue to be depressed due to global overcapacity and insufficient growth in demand.

Between its high point in June 2008 and its low in March 2009, the CleanTech Index dropped even more than broader markets, declining 61 percent versus the S&P 500's 49 percent and the NASDAQ's 46 percent dips. The recovery has shown the opposite pattern: to the end of November 2009, the S&P and NASDAQ were up 67