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Conventional Energy

Felix Karabanov

 | ViresInNumeris

Last Login: 11/16/2024


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+28.5%
since 4/11/2022

+9.9%
Ø-Perf. per year

+17.6%
Performance (1yr)

40.5%
Volatility (1yr)

0.2
Return/Risk



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Trading Idea

The idea of this wikifolio is to invest in proven and affordable energy sources. The first reason behind this idea is, if capital gets withdrawn from a sector, it might have to reduce costs and increase e.g. dividends, in order to attract new capital. The precedent for this idea is the Tobacco industry, which faced similar divestments as conventional energy today. Nevertheless, Tobacco stocks, in my opinion, after factoring in dividends, have, in the past, performed better than one might have expected. This pattern might repeat with conventional energies. The second reason for this idea is that 'renewable' energy sources have, in my opinion, already proven to be less clean, more unreliable, and more costly than advertised. Yet, energy might be considered the most basic need of society. So the conventional energy sector should stay alive and well for longer than current western sentiment might suggest. The third reason for this idea is the potentially starting deglobalization of the world, which should continue to increase prices for energy for a long time. This wikifolio wants to implement this idea by buying ETFs, Funds, and stocks in the Coal, Oil, Natural Gas, and Uranium sector. During times when not all is invested, it's the goal to be long 'save harbor currencies', as well as hold a cash position. The potential geographical selection of the holdings is global, but a focus on North America and Europe is intended. The decision-making process should be informed by chart analysis (e.g. RSI, trend lines, Fib Retracement/Extension, candlestick patterns), and economic indicators (e.g. M2 money supply, interest rate spread, consumer price index). It's the goal to take advantage of overextensions to the upside and the downside within the individual sectors and swing trade between them. The investment time horizon should be mostly long-term, while occasional medium-term trades are also possible.

Master data

Symbol

WFNOESGNRG

Date created

04/11/2022

Index level

-

High watermark

125.8

Investment Universe

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For the composition of the virtual portfolio click here.

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