Check out this week’s stories about California’s 100% clean energy target, Amazon the advertiser, and global EV progress. What does it all mean for investors? (3:15 min read)
This information does not take into account your personal objectives, financial situation or needs. You should consider if the relevant investment is appropriate having regard to your own objectives, financial situation and needs.
1. California sets an ambitious clean energy target
The California State Assembly approved a measure requiring all energy to be from renewable sources by 2045.
California is becoming a shining example for living fossil fuel free; not long before the 100% renewable target was established, the state announced a plan requiring solar panels to be installed in most new homes from 2020.
What does it mean if you’re invested in traditional energy/fossil fuel industries?
We believe the switch to renewable energy sources will accelerate and is already becoming an irreversible trend.
It’s being fuelled by declining prices for renewable energy, which is now comparable or even cheaper than traditional energy sources in some locations, and ever-improving battery storage technology.
If you’re invested in traditional energy or fossil fuel companies, beware of the disruptive technologies shaping the energy sector – they will only continue to reduce the need for traditional energy sources.
What does it mean if you’re invested with AtlasTrend?
We recently launched the Clean Disruption Fund, which invests in companies creating a cleaner, greener world.
We believe more regions around the world are likely to follow California’s lead and commit to 100% carbon-free electricity over the decade.
It may occur faster than many think, particularly since there is growing consumer awareness of the economical and environmental benefits renewable energy delivers.
2. Amazon quietly ramps up its ads business
Amazon is in always making the headlines for various reasons – whether it’s for disrupting a new industry or most recently joining Apple in the trillion-dollar valuation club – so naturally, some news goes under the radar.
Take for example, the fact its digital advertising revenue surged by about 130 percent to $2.2 billion in the first quarter, compared with the same period in 2017.
What does this mean if you’re invested in Amazon?
The online retailer is definitely not resting on its laurels, and has a real chance at breaking up the Facebook-Google online advertising duopoly.
Amazon has some distinct competitive advantages over its competitors in this space: deeply understanding shopping habits, a brand-safe ad environment, and more relevant product suggestions.
This makes them an advertising force to be reckoned with, and an even more attractive investment.
What does this mean if you’re invested with AtlasTrend?
AtlasTrend’s managed funds own Amazon shares in both Online Shopping and Big Data because of the company’s far-reaching impact beyond e-commerce.
We also own shares in its direct ad competitors, Facebook (Splurging Baby Boomers Fund) and Google (Big Data Big Fund).
We believe digital advertising as a whole is growing, and more competition will drive all players to innovate as they battle for market share.
This should be a win-win for users and investors.
3. It’s been a big week for EV
The EV space continues to heat up as key players go public, car manufacturers electrify their models or choose EV as their gateway into the automotive sector. The latest hits include:
- NIO, a Tesla competitor in China, files for IPO
- Dyson (yes, like the vacuum cleaners) pushes ahead with 2-billion-pound EV plan
- Mercedes-Benz debuts their first all-electric car
What does this mean if you invest in the automotive sector?
Most traditional car companies have committed to electrification of their vehicles, either launching or planning to launch EV ranges in the not so distant future.
While Telsa has been the EV poster child, successfully shifting behaviour and selling vehicles long before the others joined, they’ve also had massive production setbacks.
You don’t have to be first to market to succeed, so don’t write off the traditional car companies – particularly those launching into EV and doing so successfully.
What does this mean if you’re invested with AtlasTrend?
Our Splurging Baby Boomers Fund owns shares in Daimler, maker of Mercedes-Benz.
Part of the reason why we own the stock is because we think it’s a tech leader, and well-placed to capitalise on the potential growing adoption of semi-autonomous EV by its core customer demographic – baby boomers.
The Clean Disruption Fund is also exposed to EV via an investment in BYD; the profitable, dividend-paying version of Tesla for the Chinese market.
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