Energy Sector

  • 23 May
    Energy Storage Is The Next Big Trend – Here’s What You Need To Know Before Investing

    Energy Storage Is The Next Big Trend – Here’s What You Need To Know Before Investing

    • The technology is close to being profitable.
    • This will not only boost the industry, but also renewables.
    • Knowing what’s going on is key to profitable investing.



    Introduction

    Right now, solar is doing really well with the latest positive news being the state of California making it mandatory to install solar roofs on new houses by 2020.

    However, solar and wind energy, the drivers of renewable energy, are both very volatile and don’t produce most of their energy when it’s needed. You never know whether it will be windy, and solar energy is mostly produced during midday despite the highest consumption occurring in the evening. This leads us to the key component for renewables, which is energy storage.  More →

    By Sven Carlin Energy Sector Investiv Daily
  • 25 Jul
    Is It Time To Invest In Natural Gas?

    Is It Time To Invest In Natural Gas?

    • There are many influences on natural gas in the short term, but the long term is pretty clear.
    • Despite the growth in demand, there is no supply gap expected, and thus cost and moats should be looked for in potential investments.
    • As the long-term trend is positive, it’s a good thing to buy when there is pessimism in the sector, which is usually for a relatively short period.

    Introduction

    I recently wrote an article on oil where I discussed the implications of and best timing to invest in oil. A commodity that is closely related to oil is natural gas. However, the long-term supply and demand trends are a bit different than those for oil which make natural gas an interesting long-term investment opportunity. More →

  • 20 Dec
    Be Overweight In These Sectors In 2017

    Be Overweight In These Sectors In 2017

    • Increasing interest rates make earnings growth unlikely and increase the probability for a decline of the S&P 500.
    • To beat the S&P 500, you have to invest in sectors that offer a better risk reward ratio than the S&P 500.

    Don’t Go For 10 To 20 Percent Returns In 2017

    With the S&P 500 yielding 3.85% going into 2017, stocks in general are currently an investment vehicle that gives you a small and limited upside with a potentially large downside.

    We know that the FED plans to raise interest rates another three times in 2017. If that happens, the investments people consider most secure—like treasuries, dividend paying blue-chips or REITs—will be hit the hardest because as required yields go up, their asset prices will go down. Therefore, the best way to prepare for 2017 is to position yourself so that if the FED raises rates, your upside is far bigger than 3.85% and your downside far smaller than the potential downside of the currently overvalued stock market. More →

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