In his podcast addressing the markets today, Louis Navellier offered the following commentary.
ESG Oscillations
I want to point out that stocks are normally oscillating but I’m noticing this is especially true with the ESG-related stocks, such as Enphase Energy Inc (NASDAQ:ENPH) and other stocks that might be in an ESG portfolio, since ESG funds are getting hit with redemptions. Even though Enphase is an outstanding stock, it can get hit when the ESG accounts and funds get hit with redemptions.
Q4 2022 hedge fund letters, conferences and more
Interestingly, many of the previous ESG investment policies were debated at past World Economic Forums. Now that worldwide fossil fuel usage is soaring as China, India and Germany burn more coal, it will be interesting how ESG will be redefined, since both the NASDAQ 100 and the S&P 500 recently added energy companies.
According to CBNC’s Andrew Ross Sorkin, most of the complaints about ESG are coming from America executives and one from a fossil fuel company said that he believes that ESG has become too distracting. In the meantime, BlackRock’s Larry Fink is trying to refine exactly what ESG is now that BlackRock is losing assets and is the subject of endless criticism.
The World Economic Forum also pushed global trade, but the U.S. Inflation Protection Act implemented a lot of domestic incentives for electric vehicle (EV) manufacturing that annoyed U.S. allies, especially in Europe. Due to these conflicts and bad faith by many countries, I expect this year’s World Economic Forum to be a bust.
One source of tension at the World Economic Forum is that CNBC reported that over 200 millionaires were urging the billionaire elite to “tackle extreme wealth” and “tax the ultra-rich” to help relieve the cost of living for ordinary households.
Ironically, the reason that many British households and other households throughout Europe are struggling with high electricity bills are directly attributable to the ESG and green energy initiatives that were pushed at previous World Economic Forums. Clearly, the World Economic Forum is now disintegrating into a blame game where they are looking for scapegoats.
Tight Diesel Supplies
The Energy Information Administration reported on Thursday that U.S. crude oil inventories rose 8.4 million barrels in the second week of January. This follows a 19 million barrel increase in the first week of January, so the U.S. is flush with crude oil.
Gasoline inventories rose 3.5 million barrels in the second week of January and 4.1 million barrels in the first week, so the prices at the pump may moderate. However, distillate (e.g., diesel, jet fuel & heating oil) inventories declined 1.9 million barrels in the second week of January and 1.1 million barrels in the first week, so the U.S. shortage of diesel persists.
A European Union embargo on Russian diesel kicks in February, so diesel prices are expected to continue to rise due to tight supplies.
Housing Bubble Pricked
The National Association of Realtors announced on Friday that existing home sales plunged 17.8% in 2022 to 5.03 million, which is the lowest level since 2014. In December, existing home sales declined 1.5% to a 4.02 annual pace and are running 34% lower than a year ago.
December’s monthly sales were the slowest in over 12 years (since November 2010). Clearly, the Fed has pricked a housing bubble and it will be interesting if lower mortgage rates can stimulate existing home sales.
Coffee Beans
A giant cane toad dubbed "Toadzilla" weighing 2.7kg has been discovered in Australia. The rangers who found the toad described it as looking "almost like a football with legs." The world record for the largest toad in history is 2.65kg - set by a pet toad in Sweden in 1991. Source: Sky News. See the full story here.
