Energy & Commodities

Clean Energy Is Doomed Without More R&D Spending

Late last year, a study by the Intergovernmental Panel on Climate Change (IPCC) looked into exactly how much it will take to meet the climate change goals set by the Paris Agreement. The report, composed by the United Nations consortium of hundreds of climate scientists from around the world, found that if the world has any hope of reaching the climate change cutoff set by the Paris Agreement, the international community will have to transition to 100 percent clean energy by the middle of the century.

In the Paris Agreement (which polls show that most U.S. citizens still support, even after President Donald Trump backed out of the agreement in 2017) 186 countries agreed to cap still-rising global temperatures to less than 2° Celsius by 2100, with a goal of limiting warming to just 1.5 degrees Celsius above preindustrial levels. This is a serious challenge, the grand dimensions of which are made all the more clear by the IPCC’s findings…CLICK for complete article 

Commodities Are Having A Stellar Year

Commodities were on mostly sound footing in the first half of 2019. The S&P GSCI returned more than 13 percent as of June 30, one of the best first six months in recent memory. It was not without its challenges, though.

In a repeat of last year, crude oil was the top-performing commodity, up 28.76 percent as of June 30. Price action was driven mostly by tensions in the Middle East as well as extended supply cuts by the Organization of Petroleum Exporting Countries (OPEC) and its allies. Global growth concerns began to put pressure on oil in April, but prices surged following June’s attack on two tankers near the Strait of Hormuz, for which the U.S. blamed Iran….CLICK for complete article

Waiting for the “Big Fish”

Andy Preikschat, manager of the private Edgebrook Fund, released his annual mid-year letter to shareholders. He has been kind enough to share it with us this year, at the halfway point of his 30 year plan. Find out about his investment strategy as well as some of his recent buys and sells of Canadian listed companies in the fund. ~ MT Editor

At Edgebrook, we sit on the edge of a brook, patiently waiting to seize that big fish. What does a “big fish” look like? To us microcap investors, a “big fish” is a microcap company with all three of the following necessary criteria: #1 Market Leader in a niche category, with Incentivized Fanatics who won’t bamboozle us, with the potential to Grow Earnings (and the stock price) at least 3-5x over 3-5 years… CLICK to read the complete letter

3 Technical Reasons Why the Bull Market May Be Over

Investors can find plenty of fundamental reasons to think the 10-year bull market is coming to an end, with retail fund outflows, crashing yields, and the destruction of globalization all perfectly capable of signaling the next recession. However, technical price structure may offer stronger clues to market direction as we near the end of a prosperous but turbulent decade. And right now, this arcane venue is flashing warning signs that could translate into much lower stock prices.

Let’s look at three technical elements that predict the S&P 500 has topped out or will top out in coming months. All revolve around perfectly placed 2019 price action and broad brush pattern readings asserting that the rally has reached a level that can’t be sustained in the second half. What these numbers don’t reveal is the ultimate downside if bears resume control of the ticker tape, especially after more than nine months of binary price swings….CLICK for complete article

An Unexpected Boon For Alberta’s Oil Producers

Alberta light oil producers have been decimated over the last few years, and especially so in the last nine months following the “blow up” in the Canadian light oil differential in Q4/2018 to over $30 a barrel.

This extreme widening in the differential has added to the woes of an industry still reeling from the impact of the 2014 oil collapse and has prompted Alberta’s government to take the rare step of imposing…Click here for full article

Mike’s Editorial – No Denying It Now

Where are the poverty advocates and progressives who tell us how much they care about the poor? One thing for sure, they don’t care about the vast majority of First Nations directly impacted by the Trans Mountain expansion who have made it clear it’s their best hope to alleviate poverty in their communities.