Ferg's Finds
This is a short weekly email that covers a few things I’ve found interesting during the week.
Articles
This is a crazy read considering it is from Member of the Executive Board of the ECB.
Monetary policy tightening and the Green Transition
Put simply, renewable energies are more competitive when interest rates are low.[4] While simulations suggest that the LCOE of a gas-fired power plant would change only marginally if discount rates were to double, that of offshore wind could rise by nearly 45% (Slide 2).[5] Widening credit spreads may exacerbate these effects in many developing and emerging economies.
The reference is this: Projected Costs of Generating Electricity 2020 which is interesting as the charts have the ability to select three different discount rates and what they do to different generators LCOEs.
Podcast
Niall Ferguson on Cold War 2, Middle East Conflict, and Woke Students MHC | 154
The whole podcast was great but I found 40mins mark on especially interesting as Niall digs into the whole woke issue.
Quote
“One man with conviction will overwhelm a hundred who have only opinions.”
-Winston Churchill
Tweet
This is a fantastic GIF from Rory.
Charts
Somethings got to give.
Something I'm Pondering
Off the back of the Niall Fergusons podcast I linked earlier, what happens when the bulge of wokeness we currently see in today’s universities starts to move into positions of power?
I created the below chart to illustrate my point.
I hope you’re all having a great week.
Cheers,
Ferg
P.S. The idea of hedging is always attractive; risk 0.25-0.5% for a big payoff in market smackdown, which gives you cash at the perfect time to put it to work. In theory, this is straightforward, while in practicality, it is actually really hard to find companies you think will go down and have cheap volatility to provide a great payoff.
If you’d like to see a hedge that worked, this show in which I shorted US Utilities is now up on Youtube (with a few month lag).
The shows are available here on Crux Investor.
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