Hello Everyone,
Exercise caution in your business affairs, for the world is full of trickery. (Desiderata)
Some time ago, I used this same heading for a previous “Thoughts” article, but no apologies for that. In today’s climate, it seems even more apt.
It now appears to me that our so-called “Betters” (politicians of all colours and creeds), the so-called Elites, the Intelligentsia, the Media manipulators, the high-minded Greens and Woke brigade, the Political and Financial decision makers, and the proliferation of committees, are totally failing the common man - that is, you and me.
There is no task too big for them to fail: climate change and Net Zero, control of inflation, lockdowns, Russian sanctions, HS2, vaccine production and its administration, plus runaway crime. The list goes on and on. It would be laughable if it were not true, but these people also apparently have the time, and find it necessary, to redefine the definition of a woman! You could not make this up.
There are simply too many cases where some top managers, particularly in public and pseudo-public enterprises, have enormous remuneration packages which in no way reflect their achievements. Proving the “Peter Principle”, their friends have promoted them to their level of incompetence, and so the roundabout goes around.
We need a fresh start. We have perhaps now reached the stage which Sir Alec Douglas-Home described as follows: “Political and Social problems have become insolvable, and Economic ones are now incomprehensible.” How a change in direction for the better can be achieved, I do not know, but I do know that I would not like to be charged with this Herculean task. Let us hope that the solution will not involve rioting and bloodshed to turn this ship around. We need a new management style that, when presented with a sandwich, does not eat the centre and leave the crust.
All of the above, along with the present conflicts and unrest around the world, is enough to make anybody depressed, and I am no exception. Looking at my investments, I fight to stay positive and look for any opportunities that present themselves. Well, one “may” have arrived on the scene in the form of HANetf ICAV Future Of Defence. It appears that with aggression coming from Putin towards NATO and pressure from Mr. Trump, there now seems to be a general agreement from the countries within NATO to lift their defence budgets to 3% of GDP. This will result in a huge amount of money moving into the hands of the Western Arms Industry with a subsequent improvement in their profitability and value (or so you would expect). This is the arena where the ETF Future of Defence intends to operate. It has already gained more than 20% since its incorporation last year. I have made a small investment to see whether this fund has legs.
A few months ago, I touched on the fact that copper is used in so many of the new developments of AI projects, electric cars, and is the enabler of the green revolution. This is going to require an expansion of the present electricity grids in order to carry the larger amounts of energy that are going to be needed as this moves forward. The International Energy Agency has predicted that the increase in annual demand worldwide could be as much as 30%. Working copper mines, however, are not thick on the ground, and they are predicting a considerable shortage accompanied by a sizeable increase in the price per tonne. Perhaps this is time for another “spot of Sprott”. There is an ETF designed to benefit from the increase in value and demand for copper. It is called HANetf ICAV Sprott Copper Miners. Previously, I had put my toe into the water with this ETF, and now I am increasing it to a leg. For the moment, the value of this fund is increasing nicely.
Recently, there does seem to have been a certain amount of backtracking in the hysteria associated with the race to achieve Net Zero. It would seem that the continuing use of a certain amount of fossil fuels - oil, gas, and coal, along with nuclear - will be kept as a security backup for renewable sources of power. This is demonstrated by a reduction in investment into green resources being made by many large energy companies such as Shell, BP, and Exxon. This has been accompanied by less waving of their green credentials. The potential expansion back into a greater variety of energy sources would appear to be breathing new life into two of our old favourite funds: TB Guinness Global Energy and Schroder ISF Global Energy. Both of these funds appeared again in our Saltydog numbers a few weeks ago, so maybe they are worth watching.
I find that Investment Trusts and Exchange Traded Funds provide me with lots of interesting insights into what is happening and being developed in the world. Similar designated funds group together, so that at a glance it is possible to see what is the flavour of the month. It can be useful.
You can tell by the start of this article that I am getting on in years, and as everybody is telling me, I am getting more grumpy. However, I maintain that I still have all my marbles; it is just that sometimes I cannot tell what colour they are!
Exercise caution in your business affairs, for the world is full of trickery. (Desiderata)
Some time ago, I used this same heading for a previous “Thoughts” article, but no apologies for that. In today’s climate, it seems even more apt.
It now appears to me that our so-called “Betters” (politicians of all colours and creeds), the so-called Elites, the Intelligentsia, the Media manipulators, the high-minded Greens and Woke brigade, the Political and Financial decision makers, and the proliferation of committees, are totally failing the common man - that is, you and me.
There is no task too big for them to fail: climate change and Net Zero, control of inflation, lockdowns, Russian sanctions, HS2, vaccine production and its administration, plus runaway crime. The list goes on and on. It would be laughable if it were not true, but these people also apparently have the time, and find it necessary, to redefine the definition of a woman! You could not make this up.
There are simply too many cases where some top managers, particularly in public and pseudo-public enterprises, have enormous remuneration packages which in no way reflect their achievements. Proving the “Peter Principle”, their friends have promoted them to their level of incompetence, and so the roundabout goes around.
We need a fresh start. We have perhaps now reached the stage which Sir Alec Douglas-Home described as follows: “Political and Social problems have become insolvable, and Economic ones are now incomprehensible.” How a change in direction for the better can be achieved, I do not know, but I do know that I would not like to be charged with this Herculean task. Let us hope that the solution will not involve rioting and bloodshed to turn this ship around. We need a new management style that, when presented with a sandwich, does not eat the centre and leave the crust.
All of the above, along with the present conflicts and unrest around the world, is enough to make anybody depressed, and I am no exception. Looking at my investments, I fight to stay positive and look for any opportunities that present themselves. Well, one “may” have arrived on the scene in the form of HANetf ICAV Future Of Defence. It appears that with aggression coming from Putin towards NATO and pressure from Mr. Trump, there now seems to be a general agreement from the countries within NATO to lift their defence budgets to 3% of GDP. This will result in a huge amount of money moving into the hands of the Western Arms Industry with a subsequent improvement in their profitability and value (or so you would expect). This is the arena where the ETF Future of Defence intends to operate. It has already gained more than 20% since its incorporation last year. I have made a small investment to see whether this fund has legs.
A few months ago, I touched on the fact that copper is used in so many of the new developments of AI projects, electric cars, and is the enabler of the green revolution. This is going to require an expansion of the present electricity grids in order to carry the larger amounts of energy that are going to be needed as this moves forward. The International Energy Agency has predicted that the increase in annual demand worldwide could be as much as 30%. Working copper mines, however, are not thick on the ground, and they are predicting a considerable shortage accompanied by a sizeable increase in the price per tonne. Perhaps this is time for another “spot of Sprott”. There is an ETF designed to benefit from the increase in value and demand for copper. It is called HANetf ICAV Sprott Copper Miners. Previously, I had put my toe into the water with this ETF, and now I am increasing it to a leg. For the moment, the value of this fund is increasing nicely.
Recently, there does seem to have been a certain amount of backtracking in the hysteria associated with the race to achieve Net Zero. It would seem that the continuing use of a certain amount of fossil fuels - oil, gas, and coal, along with nuclear - will be kept as a security backup for renewable sources of power. This is demonstrated by a reduction in investment into green resources being made by many large energy companies such as Shell, BP, and Exxon. This has been accompanied by less waving of their green credentials. The potential expansion back into a greater variety of energy sources would appear to be breathing new life into two of our old favourite funds: TB Guinness Global Energy and Schroder ISF Global Energy. Both of these funds appeared again in our Saltydog numbers a few weeks ago, so maybe they are worth watching.
I find that Investment Trusts and Exchange Traded Funds provide me with lots of interesting insights into what is happening and being developed in the world. Similar designated funds group together, so that at a glance it is possible to see what is the flavour of the month. It can be useful.
You can tell by the start of this article that I am getting on in years, and as everybody is telling me, I am getting more grumpy. However, I maintain that I still have all my marbles; it is just that sometimes I cannot tell what colour they are!
Best wishes and good luck with your investments.
Douglas
Founder & Chairman
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