Find out the broader implications of Shell’s EV acquisition, soaring stocks and Bitcoin’s volatility.

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. Shell gets electrified

Europe’s largest oil company (Royal Dutch Shell) has agreed to buy Europe’s largest electric vehicle charging company (NewMotion).

The deal represents Shell’s first entry into the EV space, and comes as no surprise considering the oil giant expects around a quarter of the world’s car fleet to be electric by 2040.

What does this mean if you’re invested in oil companies?

Limited impact in the short term (next 2-3 years) because big oil companies will continue to make most of their money by selling oil they get out of the ground.

Investing in EV-related companies indicates recognition that the future of transport will be powered by electrification rather than fossil fuels, which will at some stage reduce demand for oil globally.

Big oil companies are starting to prepare for this. When will this occur? Shell’s CEO thinks oil demand might peak in the next decade, so really it isn’t that far away.

Shareholders in big oil companies should keep a close watch.

What does this mean if you’ve invested money with AtlasTrend?

We don’t have any direct investments in oil companies, but we are looking into the EV industry. Despite rapidly growing interest, there are only 2 million electric vehicles on the road globally (currently 2 out of every 1,000 vehicles).

However, this is changing quickly. The International Energy Agency predicts that by 2025, there could be 75 million EVs on the road around the world.

For investors, there is near certainty EVs will grow over the next decade – it’s simply a question of how fast. With countries such as the UK and France banning the sale of petrol and diesel cars from 2040, we think the EV industry might grow much faster than expected.

 

2. Stocks hit record highs

Various stock market indexes continue to go from strength to strength as Q3 earnings start rolling in.

The record-breaking highs have some investors worried about the market slipping but earnings season appears to be off to a strong start.

What does this mean if you’re invested in the share market?

Major international stock markets have been riding a strong positive wave achieving record highs multiple times this year.

The quarterly reporting season (when all listed companies report their profit results) will have a real impact on whether these record highs can be sustained. On average, if most companies report a strong outlook for their business and exceed market expectations, the stock market should keep going up.

What does this mean if you’ve invested money with AtlasTrend?

For every company we invest in (and for companies that are in the same industry), our investment team analyse their quarterly profit results very closely.

We also share our thoughts on these profit results with all our members so you know exactly what is going on with your investments. Depending on the quarterly profit results, we typically buy or sell shares in various companies for each managed fund to build better potential long term returns for our investors.

 

3. Bitcoin’s rapid rise

The world’s first and most commonly traded cryptocurrency hit an all-time high of US$5,866 a coin on Friday.  

Bitcoin made headlines around the world as it surged past US$5,000, with Wikileaks founder Julian Assange taking to Twitter to claim he’s made a 50,000% return.

What does this mean if you’re invested in Bitcoin?

If we use history as a guide, investments that goes up multiple times in price over a short time period means no one really knows what it is actually worth.

At its current stage, it’s difficult to say with much certainty whether Bitcoin is the definitive future evolution of money, or whether it’s just one huge investment bubble.

Investors in Bitcoin should prepare themselves for a wild investment ride.

What does this mean if you’ve invested money with AtlasTrend?

We invest with the aim of building wealth over the long term in companies providing products or services that will have strong, growing demand over the next 10 years.

Therefore, we actively avoid investments that can potentially deliver Bitcoin-like returns because for us that is speculating rather than investing. Yes, you might make 10 times your money on Bitcoin but you could just as easily lose all of it.

 

For more about the types of managed funds AtlasTrend provides, click hereSign up for full details on what the Trends invest in, and access actionable investing insights. First 30 days free. Cancel anytime.

Sign up to AtlasTrend for Free

 

 

About AtlasTrend

AtlasTrend is an online investment platform that makes it easy for anyone to learn and invest in trends transforming our world.