Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Tuesday was a terrible day for solar power companies in general, and Chinese ones in particular. Yingli Green Energy Holding
So what: Chinese interest rates got hiked 0.25% today, kicking off rumors that Beijing might let the yuan strengthen versus the U.S. dollar and other currencies. That move would force Chinese businesses like Yingli into a conundrum: raise prices to account for the relatively higher cost of making its solar panels, or live with lower profits instead.
Now what: The Chinese government has not officially stated any intention to raise the value of its currency, so I think you still have to treat this purported threat to Yingli's profitability as a rumor. There is ample reason to believe in a strong solar market in 2011. Yingli and fellow Chinese solar power experts LDK Solar
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Fool contributor Anders Bylund holds no position in any of the companies discussed here. True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community. The Motley Fool is investors writing for investors.