No, really. Especially about crappy things like this. But here we are and the pointy shoes in Berlin have a solution to their self-inflicted energy catastrophe. You wanna know what it is? Nationalize their energy assets. I know, I know… it’s what Venezuala did and it’s been tried and tested hundreds of times all around the world. Fear not though, all those other times they just didn’t do it the “right way”. Germany will… or so they profess. Berlin Federal Minister
Human beings — regardless of race, religion or culture — like to embrace any belief that is absolute. This is because absolute beliefs are simple, easy to comprehend, and false positives that offer us a false sense of security. If we come to believe that a particular idea, place, or group of people are either all good or all bad, then we humans fool ourselves into thinking that we have got a piece of a particular equation all figured out.
“It’s a b**ch.” That’s how Netflix CEO Reed Hastings reportedly commented on the turn of faith for one of the growth darlings. We imagine Bill Ackman had similar things to say. Thankfully, he quickly came to his senses and walked away — $400 million lighter, but he did manage to walk away. The way we see it, Netflix is but one of the grossly overvalued growth stocks that have succumbed to gravity in recent weeks. Not to pat ourselves on the back too much,
The reason to consider Turkey is because, as we move into a time of increased uncertainty, and with the power vacuum left by the United States, I believe Turkey will once again become a key player. Not many Westerners seem to consider Turkey, which I find odd given its geographical location. Given that I’ll be there by the time you read this, let’s spend a wee bit of time on some thoughts on how it may fit into this new
Remember last year when Anglos got rid of their thermal coal assets in South Africa, doing the “woke politically correct” thing. Well, what another brilliant wealth-creating exercise. Look at what has happened to the coal “assets” (more like liabilities in Anglo’s eyes): Oh, my gracious! Look at the valuations and returns. Isn’t it bizarre? Just 7 months ago Europe was sending a delegation to South Africa with the aim of getting the country off coal. From Bloomberg: Well, lookie here… fast
Isn’t it weird how all of a sudden hell breaks loose on the inflationary front. Inflation in Germany is more or less the highest in at least a couple of generations. Ah, blame it on the Russians. While inflation may be at the highest in a few generations, bond yields are near their lowest. Clearly the bond market thinks that the inflation we are witnessing is “transitory.” This is being echoed by the ECB and their “neat little forecast.” Wow, if
So the EU, already in the middle of the worst energy crisis since the Arab oil crisis and likely worse, is now pushing to eliminate imports of Russian coal. Just so you understand the importance of Russian coal to Europe… Some 70% of Europe’s thermal coal comes from Russia. Coal accounts for about 20% of continental Europe’s electricity production (as of 2019; perhaps it is 25% now). Watching the news is enough to drive a man to drink or to put
🤔 WHAT TO DO? With bonds cracking this year… We wanted to share some thoughts around a question we got from a client the other day. It went something like this: I’ve got this money sitting with XYZ, and it’s basically in a 60/40 equity-bond split. I’m down a lot but I want to wait till it comes back, and then I’ll sell it and put it into Insider type sectors. What do you think? This is a common question