Santa’s Out of Coal Too – OWTW – ValueWalk Premium

Santa’s Out of Coal Too – OWTW

Making History

We highlighted the predictive power of magazine covers in these missives before. More often than not, they tend to time market tops (and bottoms) with stunning accuracy. The following gem adorned the cover of The Economist in early December 2020.

Q3 2021 hedge fund letters, conferences and more

The political class in power has been hellbent on making coal history. Instead, coal is making history. And not in the way the pointy-shoes had intended.

And not just that. The above cover nailed the beginning of a sharp rise in coal prices almost to the day.

You might be inclined to say The Economist is the most worthless piece of garbage in journalism (not an easy feat, considering the fierce competition). But watching our coal positions take off in recent weeks, we would argue it might well be the most valuable one.

Commodities: Crushing It

Lest you think it’s just coal… It took a painfully long 10 years, but commodities just hit a new all time high.

If you’re a long-time reader, you know we believe we’re just getting started. In fact, our belief is that one of the chief risks of this trade (long commodities) will be coming out too early.

The Green Superpower: A Play In Two Parts

The rise…

And the fall…

It would be funny if it wasn’t so painfully true (H/T to @energybants for sharing this gem). In a world where economics has given way to politics, sadly, this is what you get. And we are going to pay dearly for this stupidity as the world keeps barrelling towards a full-scale energy crisis.

World Out Of Whack

The US stock market is now bigger than the next 11 combined.

Shocking? Perhaps. But I think you’ll agree it’s hardly surprising. It is simply a reflection of just how out of whack the world is today.

It also explains why we’re not particularly interested in US markets. Not right now, anyway. Our strategy here at Capitalist Exploits HQ is simple — we shun what’s expensive and gravitate towards what’s cheap.

Santa's Out Of Coal, Too!

No matter what your Christmas wish this year, you might want to reconsider…

Have a great weekend!

Article by Capitalist Exploits

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