Long-term market bull Tony Dwyer sees near-term turbulence in connection with his “summer of indigestion” call. So, he’s encouraging investors to resist making any big moves right now.
“We’ve had one heck of a run. It’s been an excessive run in the indices,” the Canaccord Genuity chief market strategist told CNBC’s “Trading Nation” on Tuesday. “Typically when it’s this kind of indigestion beneath the surface of the market, it eventually comes out into the indices themselves.”
The major indexes just broke a two day win streak. But the S&P 500 and Nasdaq hit all-time highs during Tuesday’s session. Plus, the Dow is off just 0.58% from its record high.
It may be hard for some investors to swallow, but Dwyer believes a summer setback is virtually unavoidable. He points to a period of transition in monetary policy, fiscal policy, the economy and earnings.
“Everybody is talking about peak everything. But that’s what happens at this point of an economic recovery,” said Dwyer. “It’s what happened in 2004. It’s what happened in 2010.”
“We’ve been in the summer of indigestion really since the end of March when rates peaked,” he said. “Even though the S&P 500 and the Nasdaq are making new daily highs, the participation in them is much lower.”
But Dwyer sees a significant dip as a major buying opportunity.
“The summertime of indigestion is going to create year-end opportunities,” said Dwyer. “We look to add our exposure back into the market from a neutral position on even more of this indigestion.”
‘You just want to wait for an opportunity’
Dwyer plans to pounce on stocks again on broad market weakness.
“You just want to wait for an opportunity,” he noted. “Buy into those areas that are exposed to an economic recovery.”
“They were all really seeing excessive runs to the upside,” he said. “You’ve given back all of the relative performance gain in those four sectors over the last few weeks.”
Dwyer expects more weakness during the dog days of summer. However, he expects a dip to set the stage for a strong bullish run into year end.
“Last summer, we were very positive on the economic recovery theme and pulled in our horns on that in mid-April,” Dwyer said. “[Now] You don’t want to get too positive and you don’t want to get too negative.”
The first of 23 caissons for Princess Elisabeth Island, the world’s first artificial energy island, is nearly complete.
Princess Elisabeth Island will be an electricity grid at sea that will connect offshore wind farms to the Belgian mainland and also serve as a hub for future interconnectors with the UK and Denmark. Belgian electricity transmission system operator Elia is the project’s developer.
The 20,000-ton caissons, which will form the energy island’s outer walls, are being built at Jan De Nul Group and DEME’s construction site in Vlissingen, the Netherlands. It takes around three months to build one caisson. The production process is split into five 20-day stages. The caissons are moved between the different work sites using “runners,” which takes about six hours.
When the caissons are ready, a semi-submersible vessel will transport them further down the harbor, where they’ll be temporarily stored in the water. They’ll then be moved to their final location in the North Sea this summer, weather allowing, said maritime infrastructure company Jan de Nul.
You can watch a time-lapse video of Princess Elisabeth Island’s first caisson being built here:
Princess Elisabeth Island is part of the larger Princess Elisabeth Zone, a future 3.5 gigawatt (GW) offshore wind farm in the North Sea, around 45 km (28 miles) off the Belgian coast. The world’s first artificial energy island will receive power from the wind turbines via undersea cables, and it will then be converted to high-voltage electricity and distributed to the Belgian mainland and other European countries. The energy island will combine both direct current (HVDC) and alternating current (HVAC).
The energy island will be finished in late 2026 when the electrical equipment will start to be installed. Princess Elisabeth Island is expected to be fully connected to all wind farms and the mainland by 2030.
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Honda is finally joining the EV race after announcing a massive $11 billion (CAD$15 billion) investment to build four new EV plants in Canada. The historic investment will be used to build Canada’s first EV supply chain, enabling 240,000 Honda EVs to be made for the US and Canada annually.
Honda reveals game changing investment to build EVs
Honda announced its largest investment in Canada ever as it prepares for the electric era. The plans for a new Honda EV plant and stand-alone EV battery factory in Alliston, Ontario.
Once fully operational, the EV facility will be able to produce 240,000 EVs a year, while its battery plant will have capacity of 36 GWh per year. Production is expected to begin in 2028.
According to a press release from the prime minister’s office, Honda will build Canada’s first comprehensive EV supply chain. The project will include four new manufacturing plants in Ontario.
In addition to the EV plant and battery factory, Honda will build a cathode active material and precursor plant through a joint venture with POSCO Future M. A second is planned with Asahi Kasei Corp.
Justin Trudeau, prime minister of Canada, said Honda’s investment is a “game changer for manufacturing in Canada.” With a full supply chain, Honda expects to cut costs by over 20%.
Honda aims for EVs and FCEVS to account for 100% of vehicle sales by 2040. Honda also invested $700 million to retool three Ohio plants to serve as its hub for future EV and EV battery production.
Meanwhile, Honda’s first electric SUV, the Honda Prologue, went on sale earlier this year. Starting at $47,400 (excluding destination), the Prologue offers up to 296 miles range.
2024 Honda Prologue trim
Starting Price (w/o $1,395 destination fee)
Starting price after tax credit (w/o $1,395 destination fee)
Starting price after tax credit (with $1,395 destination fee)
EPA Range (miles)
EX (FWD)
$47,400
$39,900
$41,295
296
EX (AWD)
$50,400
$42,900
$44,295
281
Touring (FWD)
$51.700
$44,200
$45,595
296
Touring (AWD)
$54,700
$47,200
$48,595
281
Elite (AWD)
$57,900
$50,400
$51,795
273
2024 Honda Prologue prices and range
With the $7,500 federal tax credit, the Prologue’s starting price can fall to as low as $39,900 (excluding destination).
Lace Woelfer, VP of Honda America National Auto Sales, said the Honda Prologue hits the “sweet spot” as a sporty, stylish electric SUV.
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The Environmental Protection Agency (EPA) will require existing coal-fired and new natural gas-fired power plants to control 90% of their carbon emissions or shut down.
It’s the first time the federal government has restricted CO2 emissions from existing coal-fired power plants and one of four measures the EPA announced today to transition the US to a clean energy economy.
The EPA states that “the best system of emission reduction for the longest-running existing coal units and most heavily utilized new gas turbines is based on carbon capture and sequestration/storage (CCS),” which qualifies for Inflation Reduction Act tax incentives.
Coal plants that intend to stay online beyond 2039 will have to cut or capture 90% of their CO2 emissions by 2032. If a coal plant retires by 2039, it has to capture emissions but to a less stringent standard. If a coal plant retires by 2032, it’s exempt from the new final rule. Coal powered around 16% of US electricity in 2023.
The rule is projected to reduce 1.38 billion metric tons of carbon pollution through 2047 – equivalent to preventing the annual emissions of 328 million gasoline cars or nearly an entire year of US electric power sector emissions.
Harold Wimmer, president and CEO of the American Lung Association, said, “Burning fossil fuels in power plants harms people’s lungs, makes kids sick, and accelerates the climate crisis. The stronger clean air and climate protections will save lives.”
The other three final rules for coal-fired plants are:
A tightening of the emissions standard for toxic metals by 67% and finalizing a 70% reduction in the emissions standard for mercury from existing lignite-fired sources
A reduction of pollutants discharged through wastewater from coal-fired power plants by more than 660 million pounds per year
The safe management of coal ash placed in areas that were unregulated at the federal level until now
EPA administrator Michael S. Regan said, “By developing these standards in a clear, transparent, inclusive manner, EPA is cutting pollution while ensuring that power companies can make smart investments and continue to deliver reliable electricity for all Americans.”
The new EPA rules are part of the Biden administration’s pledge to achieve net zero in the electricity sector by 2035.
If you live in an area that has frequent natural disaster events, and are interested in making your home more resilient to power outages, consider going solar and adding a battery storage system. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisers to help you every step of the way. Get started here. –ad*
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