Tue. Oct 26th, 2021

While we are told that coal is having “an existential crisis,“The Wall Street Journal reports:

Coal has been in decline for years in many countries, but its use is intensifying in the United States, China and Europe, despite growing pressure from governments, investors and environmentalists to curb carbon emissions. The main reason for the increase — which has pushed coal prices to multi-year highs — is rising energy demand, as economies reopen rapidly after the pandemic hibernated.

Now, the talking heads are too fast to point out that this climb is fair storm transient, but not as we see it. An excerpt from this week’s Insider Weekly:

The dominant wisdom is that coal is in an existential decline, but you know what? Dominant wisdom is not wise at all. In fact, she is as wrong as Miley Cyrus swinging naked on a shattering ball. Just wrong.

It could be argued that long-term demand for coal will decline over the next 20 years or so, but we believe that the destruction of supply in the short / medium term will be much more dramatic than any decrease in demand. This will be a decade for coal.


It was just two months ago when Cathie Wood, a technology investor doing God’s work (according to the Financial Times), headlined:

But earlier this week, this happened: oil rose to $ 76 a barrel:

Now, that’s not choosing Cathie Wood. We are sure she is a lovely lady who kisses her children good night and eats her greens. Rather, it should be noted that when the predominant narrative is that energy from fossil fuels has run out, caput, one should pause and reflect on whether this makes sense or not.

Sometimes taking out the abacus, doing some basic reality-based math instead of fairy tale narratives will find you in the situation we’re pretty used to: loneliness. It’s a comfortable solitude, as the asymmetrical inversion returns the nevaaah comes from the classic thinking thought by bobble heads on CNBC with bright teeth and blunt smiles. We have made our bets accordingly. Maybe you’d like to consider doing the same?


Not only energy prices are rising. Here is the Wall Street Journal:

World food prices rose 4.8% in May from the previous month, the largest monthly increase since 2010, according to the Food and Agriculture Organization of the United Nations. Prices in May were almost 40% higher than a year earlier and the FAO food price index was at its highest level since 2011, when prices rose after another event. to La Niña.

With a cascade of protectionist restrictions and supply chain disruptions that have dislocated the world’s food supply, we continue to believe that food – not data – will be the new oil in the next two years (if not more). And in case you need a reminder of what happens when food costs too much:

Of all the sectors in which we are invested, we cannot think of a more important one than food. How much would you pay for food? The answer depends, of course, on your hunger level, but the price is inelastic.


If you look up the word “irony” in your dictionary, this is what you probably see:

Must be this additional range he / she / it[insert your preferred non-binary pronoun] is after …


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