A few weeks ago we highlighted the ironically prescient “Making Coal History” cover of The Economist. As a refresher, it literally bottom ticked the coal market.
Now, they’re back with another doozy of a cover.
The reason we find it so mind-blowing is because in the midst of a global energy crisis (the one we have been warning about for the last 3 years), these dolts come to the following conclusion:
Spending on renewables needs to rise. And the supply and demand of dirty fossil fuels needs to be wound down in tandem.
Now, bearded millennials will disagree with us, but the reality is simple…
As this energy crisis deepens we’re not seeing the required capitalist response coming along to solve the problem. No acknowledgement of the failure in policy. No acknowledgement that there exists an immediate and desperate need to reverse idiotic rules and to ramp up capex in things such as nuclear and natural gas. Nada!
Which means we’re in for one helluva energy boom. Strap yourself in!
ENERGY: ILLUSION VS. REALITY
Tree huggers, ESG pointy shoes, and hairy armpit women with dreadlocks probably won’t like to see it, but this is the reality of the energy market today (h/t to @trader_ferg for sharing this):
Next time you hear catchphrases like “the Green New Deal” or “the end of fossil fuels” being bandied about, remember this simple chart.
THE ART OF FINDING A MOUNTAIN
Our bent here is typically centered around markets and investing.
But the truth is, none of that material wealth matters if you go through life bitter and miserable. It’s why we thought it appropriate to dust off an old article Chris wrote about having a purpose in life.
Climbing a mountain is far more satisfying than having completed it.
The sense of well being comes from setting a goal and then achieving it. You get out of bed in the morning because you’ve got isht to get done, and heaven help anyone who gets in your way.
That is gold!
ALL THINGS TRANSITORY…
In February 2020, we started warning that lockdowns will bring about inflation and shortages. This pesky stuff is now part of our daily lives. We recently set up a dedicated inflation channel in our Insider private forum, where members can share their own experiences with all things “transitory”.
Our own Lucas shared this photo from Bunnings (Australia’s biggest hardware retailer), showing their supply of wood… or rather lack of it.
LESSON IN PATIENCE
In a world dominated by immediate gratification, being patient and having a longer time horizon than 99% of investors can be a massive advantage.
Have a great weekend!