A Primer for the "Climate Summit".

Macro Perspectives: Thu 22 Apr 2021

The White House has been relatively quiet about the multi-trillion dollar energy transformation plan the past few weeks. This will change today.

Biden will host his "Climate Summit." - a virtual meeting scheduled to run through Friday. There will be over thirty global leaders.

This will be as much about building the case for global energy transformation, through the media, as it will anything else. So we should expect the media to carry the water for the global politicians, by firing up the doomsday climate change narrative, beginning today. As for the politicians, in this summit, they will be making big and bold promises about how quickly they will get to "carbon neutral."

The Biden Plan calls for a "100% clean energy economy" and "net-zero emissions no later than 2050." This is a huge bet to make with the economy (and people’s lives) - he has an aligned Congress to fund it and execute on it.

So, this will of course come with higher regulations and massive government spending, which will drive even hotter and more persistent inflationary pressures.

There has already been gobs of money thrown at clean energy companies, and a lot more is coming. With that said, with somewhat of a lull in this theme in recent weeks, let's take a look at a few "clean energy" stocks that head into this summit with a dip to buy...

This is First Solar, an American manufacturer of solar panels - 23% off of the highs of January.

The chart below is TPI Composites, manufacturer of wind blades - 33% off of the February highs.

Cree makes materials and devices for electric vehicles - 15% off of the February highs.