Is coal making a comeback?

  Is Coal Making a Comeback? Dear reader, Say I offered you the opportunity to invest in either a renewable-energy project or a coal mine… Which would you choose? I suspect the renewable-energy project would garner more votes if I posed that question to the general public. But my readers are smarter than that. Under the right circumstances, both investments could result in big profits. But I believe the odds of the greatest profits are in coal mines. Let me explain. What I have to say may surprise you… Here in the U.S., we commonly see headlines about coal power plants shutting down and less mining of the mineral in general. But in Asia, another story is brewing. And it’s one of increasing demand and the use of coal as an energy source. That’s right, folks. Coal is making a comeback. Last year, global coal usage increased 2.6% to a new record. A large portion of that increase came from two of the most populous countries in the world – China and India. Electricity demand is growing there as more people are moving into the middle class. But we didn’t just see growth in these two Asian countries. Coal operating capacity around the world increased on an annual basis for the first time since 2019. And it was the largest growth on record since 2016. Power demand in India is expected to double within the next decade. So it makes sense that the country has plans to increase coal production by 10% to meet demand. China will add to its coal producing capacity in the coming years as well. And here in the West, the closing of coal power plants should slow. Yet global coal production is still likely to drop here in 2024. What does that mean for opportunistic investors? It’s simple economics. When demand rises and supply decreases, prices rise. So investors shouldn’t be sleeping on this space right now. Just take a look at the performance of coal-related investments over the past three years… As you can see above, the Dow Jones U.S. Coal Total Stock Market Index is up 92% over that time frame while the S&P 500 has gained just 22%. Meanwhile, the Nasdaq Clean Edge Green Energy Index has lost 44%. Now, the past doesn’t dictate future performance. But it’s certainly a good indicator. It’s a near certainty that demand for coal increase as general energy demand increases. And what else is contributing to growing energy demand – other than population growth and people moving up economic ladder in Asia? Artificial intelligence (AI). Regular readers know the impact that this technology is having on electricity demand and our power grid. As AI engrains itself deeper into the everyday lives of companies and individuals, more data will be generated. And that means a lot more electricity will be required to collect and analyze all that data. This will create an abundance of opportunities for long-term investors. Think nuclear energy, the power grid, and infrastructure companies – to name a few. And of course, you should be looking at the coal industry. Many people believe that coal is on its way out the door. But I expect coal will be a necessity over the next decade as electricity demand grows rapidly and renewable energies won’t yet be able to supply enough to officially retire the coal plants. You can bet I’m keeping a close eye on the space for near-term investment potential. My subscribers will be the first to know when the time is right. Here’s to the future, [McCall's Signature] Matt McCall Editor, Market Insights Check Out My Latest Podcast It has been a few days since President Joe Biden’s announcement that he’s dropping out of the 2024 presidential election rocked the world. That has given us some time to think about the implications. So on [this episode of the SteadyTrade Podcast]( Tim Bohen and I share our views of the historic decision. And more importantly, we discuss what it all means for your investments. It looks like it will now be a showdown between former President Trump and Vice President Kamala Harris – although nothing is set in stone. We should expect volatility in the stock market in the near term. But the big question is which sectors will benefit and which will be hurt by the candidates’ potential agendas. [Check out this must-watch podcast to learn more.](   © 2024 Centurion Publishing 13809 Research Blvd, Suite 500, Austin, TX 78750   *Results are not typical. Past performance does not indicate future results. All investing carries risk. Our Privacy Policy, along with our Term & Conditions, governs your use of this site. By using our site, or by accepting the Terms of Use (via opt-in, checkbox, pop-up, or clicking an email link confirming the same), you agree to be bound by our Terms & Conditions and our Privacy Policy. If you have provided personal, billing, or other voluntarily provided information, you may access, review, and make changes to it via instructions found on the Website or by replying to this email. To manage your receipt of marketing and non-transactional communications, you may unsubscribe by clicking the “unsubscribe” link located on the bottom of any marketing email. Emails related to the purchase or delivery of orders are provided automatically – Customers are not able to opt out of transactional emails. We will try to accommodate any requests related to the management of Personal Information in a timely manner. However, it is not always possible to completely remove or modify information in our databases (for example, if we have a legal obligation to keep it for certain timeframes, for example).If you have any questions, simply reply to this email or visit our website [( view our official policies. To Unsubscribe [Click Here](