What does the current volatility mean for energy transition investing? City Talk The driving forces behind the energy transition remain as strong as ever and the current market volatility has only enhanced these trends. There is a lot going on in the financial markets right now. Meaningful inflation has returned for the first time in decades. Supply chains everywhere continue to be disrupted. Geopolitical and social tensions [...]
What impact will Russia’s invasion of Ukraine have on oil and gas? City Talk Russia’s invasion of Ukraine is first and foremost a human tragedy. As investors though, our role is to interpret the market implications on behalf of our clients. Here, we consider the impact of the invasion on oil and gas markets. Firstly, it’s important to understand how markets stood before the invasion. Global energy markets were [...]
Four reasons to be optimistic about energy transition equities City Talk After achieving remarkable gains in 2020, energy transition equities endured a more turbulent and challenging time in 2021. Shares within the sector struggled to achieve gains as supply chain pressures and higher inflation weakened profits from many companies in the sector and investors were less enthusiastic about the energy transition theme. However, despite the uncertainties [...]
IPCC report: why the detail matters to energy investors August 16, 2021 The United Nation’s Intergovernmental Panel on Climate Change (IPCC) report will shock many people. The data speaks for itself and illustrates the most important challenge facing humanity over the next 100 years. We expect the IPCC report to shock government leaders and lead to actionable policies being implemented at the COP26 climate summit in November. These [...]
What investors can learn from Bill Gates’ climate warning March 19, 2021 When one of the world’s wealthiest individuals writes a book on avoiding climate disaster – and suggests changes we all need to make to our lifestyles – it is easy to be cynical. But the high-profile intervention of Microsoft founder Bill Gates in the climate change debate should be welcomed. This is not just a [...]
Gold hits record high – but is it really too expensive? July 29, 2020 Even as it reaches new highs, we don’t think it’s time to grow concerned about the price of gold, or gold equities. Here’s why. The gold price has been rising steadily and on Monday (27 July) hit an all-time high of $1,944/oz, beating its previous record high of $1,922 from 2011. Chart 1: The gold [...]
Two lessons from the underperformance of alternative energy December 4, 2019 Renewable energy is playing an ever-greater part in the mix of energy we use to power our daily lives. Potential investors in the sector may assume that it’s too late to get involved. Surely the best returns from companies exposed to the energy transition have already been made by now? Investors making that assumption may [...]
Can we avoid an energy crunch? September 18, 2019 The energy transition has to happen. Climate change can no longer be ignored and the political will is finally there to confront the substantial challenges. The first stage of this process is the switch from energy produced by coal and gas to energy produced by renewables, such as wind, solar and geothermal. As part of [...]
Why we’re at a tipping point for clean energy July 29, 2019 Alternative energy sources to fossil fuels have been around for many years. Wind, solar and tidal power have all been harnessed to a greater or lesser extent by numerous countries around the world. But we think that the transition to renewable energy is set to pick up speed rapidly and there are three reasons why. [...]
Gold is under-owned by investors… for now September 19, 2017 Gold remains extremely under-owned by investors despite having a solid track record as a currency of last resort in times of uncertainty, and despite the current global environment being arguably more uncertain than any point since the second world war. Current gold ETF holdings as a percentage of global ETF assets are tiny. An ETF [...]
