Rayon warns of alternative energy bubble

senate investment conference

Cazenove European manager cautions against buying into biofuel and solar after strong run in these sectors

By Mark Preskett Cazenove European manager Lionel Rayon has warned of an alternative energy bubble amid sky-high valuations and over inflated earnings estimates. Rayon, who manages the Cazenove European Alpha Absolute Return fund, said financial bubbles are not a thing of the past, pointing to the biofuels and solar sectors as areas for particular concern. "SRI funds should be renamed socially irresponsible funds," he said. "Politicians are currently waging war on CO2. "In the UK, the Government has set a target of 33% of petrol coming from biofuels by 2050 and even President Bush has s...