Over the last few years, Environmental, Social, and Governance (ESG) funds and investments were all the rage. At the time, I said these were Wall Street’s current fashionable investment themes. The street always comes up with a new flashy investment theme to fleece investors of their money.
It is now being reported that many of these funds are shutting down:
Several large asset management firms in the US have closed over twenty environmental, social, and corporate governance (ESG) funds in 2023 due to poor performance and amid greenwashing allegations. The US SEC also recently adopted a new rule to clamp down on funds that falsely advertise ESG strategies.
Prominent money managers like BlackRock have been ditching their ESG funds lately due to increasing political backlash and investor scrutiny related to greenwashing concerns. According to Morningstar data, asset management firms like Columbia Threadneedle, Janus Henderson, and State Street, among others, abandoned over 20 ESG investment products in 2023.
This downtrend has been primarily attributed to the declining performance of sustainable funds and investors’ concerns over greenwashing.
You can see from the charts that investments in wind and solar are tanking. This makes sense, as Doomberg has pointed out in the past; when physics meets politics, physics always wins, at least relating to the hopeful dreams of climate activists, their political sponsors, and related grifters.
 |
The stock indexes of the wind and solar energy companies are tanking.
On the other hand, Brent oil traded around $95/bbl last week, while WTI traded above $90/bbl.
My favorite way to play the oil bull market is via offshore drilling rigs and ancillary services. As can be seen from the tweet below, day rates are surging and will be making their way into cashflow statements as we enter the fourth quarter of 2023 and the early part of 2024.
 |
Day rates continue to rise across the board as investments in offshore production reserves increase and the available equipment does not.
I never bought into the hype of renewable energy and ESG. I understood that the longest trend in history, the ascent of man, requires massive and reliable energy inputs and would not be enabled by reliance on intermittent forms of power.
My subscribers and I were able to take this knowledge and buy fossil fuel companies and nuclear power stocks when the herd was falling for the latest Wall Street hype. We have done well, and the pointy shoes on Wall Street will return to the drawing board and figure out another can’t miss idea to take the unwitting investors’ money.
If you want to know how we consistently stay ahead of the crowd, consider subscribing to the Actionable Intelligence Alert Newsletter.
nterested in knowing how I translate the information in these emails into investment ideas?
Consider a subscription to my paid newsletter “Actionable Intelligence Alert”. You can check it out by going to the site below:
I have started up a Patreon account for those that wish to help support my work. Check it out here:
If you pledge at least $5.00 I will send you the current month’s stock pick (this is a one-time stock pick). This way you can sample the “Actionable Intelligence Alert” newsletter and see if it is for you.