By the time you see headlines like this, it is typically too late for a retail investor to chase the train.
But not in this case – the Energy stocks, especially in Canada, are still depressed and undervalued; however, almost every day now brings further evidence the Money flow is shifting its course and becoming ever more conventional energy friendly.
Rodney Garrard calls this “A return to Energy Realism” in his recent article on GeoExPro.
Picking on the news this month published by The Guardian that Lloyds will no longer disadvantage conventional energy insurance, Rodney argues the future policies should be balanced, inlcuding financing appropriate and qualifying conventional Energy, R&D for new high density energy development and support energy transition.
We coulödn’t agree more. In fact, we’ve been saying we need this balance long ago.
Too often ideology drove the decisions and with many (not all!) renewable energy projects unable to show meaningful ROI despite subsidies, favouritism and protection, this could only work in business for so long.
After all, 80% of world’s energy needs are conventional (fossil) energy sources.
And the transition away from it would take a while.
So it only makes sense for the Insurance industry to admit the obvious.
Let’s stay balanced out there.
Just like our Canadian Energy Fund .