RE: ETF shorts24 Jun 2022 17:58
Dr very clever but I am not your macro guy. The transition has already stalled in my view as governments around the world are scrambling for coal, LNG etc etc. The oilies I invest in are minting it.
Your 2nd point - honestly I don't know neither do I care.
I look at the company and the fact that they carry this risk which is construction risk at the moment and the headwinds they face regarding the deceleration of the green transition plus inflation and see it much lower than they currently are.
HZM were behind the curve with finance and are now paying the price for it.
This is an extract below from a fund I invest that has a lot of solar and wind asset investments. It refers to the UK gov energy strategy. I believe the same to hold true across the world. Governments need to get elected they will not be if they have people living in fuel poverty and having to subsidise green agendas and nickel batteries for your Teslas et al. They will capitulate and not invest in the transition as you call it as heavily as they would have liked.
"High energy prices have led to the failure of a number of retail supply businesses, contributed to a wider cost-of-living crisis and high inflation, and have resulted in increased levels of fuel poverty and reduced industrial competitiveness. Reconciling the objectives of energy security, the decarbonisation agenda, and the cost of energy remain the key challenges at the heart of energy policy. The recent energy strategy did little to provide detail on how these potentially competing priorities will be balanced."