The “Pick and Shovels” investment strategy uses a new gold mine as a metaphor. It says that once gold is found, the surest way to win is not to buy land near the first lucky prospector, but to open a shop nearby selling mining equipment to benefit from those who who do this.
The latest report by Citi analyst Martin Wilkie strongly argues that electronics stocks are the best investment for the power shortages affecting Europe and China, and for longer-term efforts to achieve net zero emissions and decarbonization.
There are some remarkable statistics in Mr Wilkie’s report. On the one hand, the European Commission estimates that there are eight billion electric motors in this region alone, which account for around half of electricity consumption. The analyst estimates that new motors and motor drives that control machine speed are being introduced by companies like ABB Ltd. “Can easily save 20 percent of electricity consumption”.
According to the report, lighting accounts for over 15 percent of global electricity consumption. Citi believes that higher electricity prices will accelerate the transition to LED lighting. The US Department of Energy estimates that LED lighting currently accounts for 51 percent of outdoor lighting in the US, but only 30 percent indoors.
Mr. Wilkie lists three companies that he believes will benefit from these trends. ABB for motors and related sensors, Schneider Electric SE for energy management systems and Signify NV for lighting.
A research report published Wednesday by RBC Economics entitled The $ 2 Billion Transition: Canada’s Road to Net Zero highlighted the level of investment and commitment this country needs to meet its net zero emissions targets by 2050. In Canada and worldwide, energy management and protection through electrical devices will certainly play a major role.
– Scott Barlow, market strategist for Globe and Mail
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Stocks to think about
Gibson Energy Inc. (GEI-T) If you’re firm against fossil fuels, keep going. However, if you’re open-minded about holding some traditional energy stocks in your portfolio and capturing some high returns, Gordon Pape explains why Gibson Energy is worth considering.
Fear of inflation? Here are four things every investor should know
The return of inflation is now the market’s most feared Halloween horror story. But how petrified should investors be given the threat of rising prices? Ian McGugan shares some thoughts.
So you think that by moving your account, you are going to teach your online broker a lesson
Many investors were rightly upset earlier this year about their terrible customer service on online brokers. But now complaints are becoming less common. In all of this, there is a lesson for people on how to pick the right broker, as Rob Carrick explains.
On the crypto roller coaster: Bitcoin is approaching a record high
Bitcoin is on the cusp of an all-time high, its recent rally fueled by the launch of the first publicly traded US Bitcoin futures fund that investors believe could bring cryptocurrency to many new investors. But the advent of cryptocurrency ETFs in the world’s largest economy wasn’t the only driver of this chapter of the 2021 Bitcoin roller coaster. Here’s a look at the momentum of its push towards a record high this week.
See Also: Canadian Cryptocurrency Funds Losing Potential U.S. Inflows
Other (for subscribers)
Gordon Pape: My Balanced Portfolio continues to beat targets, growing 8% annually
Number Cruncher: Seven US restaurant stocks with enticing gross profit margins
Number Cruncher: Are there any investment opportunities in the midst of the shipping industry congestion?
Analyst upgrades and downgrades Wednesday
Analyst upgrades and downgrades Tuesday
Developed market stocks, US technology and Japan stocks will all rise in 2022, the fund manager says
How supply chain challenges affect investment prospects
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What’s going on in the next few days
Rob Carrick talks to actuary Fred Vettese about a new book that explains how young people can reconcile housing and retirement planning. Unfortunately, his formula doesn’t work in Toronto.
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Compiled by Globe Investor Staff