Chaos Breeds Opportunity - How You Can Capitalize On Carbon Transformation


Gas prices are high, energy stocks are all over the map, there’s a push to move to electric vehicles, and of course, a push against it.  Where does that leave us?

Historically, progress is undefeated. While electric transportation has its shortcomings, it’s hard to see a future where electric vehicles don’t exist in some capacity - growing as time progresses.  Globally, mandates and policies have pushed companies in the direction of more eco-friendly electric alternatives. 

Consider Germany, whose 5 Trillion-dollar economy imports about 100 billion dollars worth of energy.  This makes up only about 2% of GDP, however, you can’t run the economy without a stable energy supply.  Germany set incredibly ambitious goals regarding the decrease of carbon emissions by 2030.  Germany, Europe’s largest economy went backward in 2021, increasing emissions by 4.5%. Some see this as a negative, while the optimist believes this will only increase the urgency with which they attack the problem.

Currently, in America, we’re seeing similar issues. Electric vehicles are heavily promoted, but they’re also expensive.  According to a January ‘22 article from Car and Driver, the five most popular electric vehicles all hover around $40,000.  High-end electric vehicles from Porsche and Tesla cost upwards of $80,000.

Current electric vehicles feel like more promise than performance, with seemingly just as many detractors as there are champions. Finally, electric vehicles are just the tip of the iceberg, what about commercial ships and  Where does that leave us?  Outside in a rainstorm, on the doorstep of change. Somebody is bound to figure it out, and there is immense urgency.

Roger Mortimer, Portfolio Manager of KraneShares Global Carbon Transformation ETF KGHG is betting on some unique suitors.  His philosophy is to target ‘dirty’ companies that already exist, who are most aggressively solving the problems that already exist, rather than ‘clean’ start-ups.  You can listen to him discuss the strategy at length on Animal Spirits podcast.  

His stance holds value, and the strategy is promising.  Also contributing to the optimism of global carbon transformation is research done by Goldman Sachs Global Investment Research, which suggests that annual investments in green energies will increase by €155 billion by 2030E.

After giving Roger Mortimer a listen, and conducting your own research, you can invest in KGHG through most trading platforms.  Consider using Robinhood if you’re a novice investor, or Webull if you’re more experienced.

Posted In: FintechGovernmentLong IdeasRegulationsSpecialty ETFsTrading IdeasETFsStocks to Watch
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