Market bull Art Hogan is looking beyond the trading week’s rough start.
The National Securities chief market strategist expects the violent moves will set the stage for a massive comeback that will prompt him to hike his S&P 500 year-end target.
“Here we are with everything for sale in a risk-off mode. People piling into the Treasurys,” Hogan told CNBC’s “Trading Nation” on Monday. “Likely, all of that gets stretched.”
“We have a 5% drawdown every year on average. Often we have a 10% drawdown on an annual basis,” noted Hogan.
In this environment, he’s encouraging long-term investors to be equal-weight growth and cyclical names. He has had the strategy going back to the early days of the pandemic.
“If you rebalance that every two months and keep that barbell level, I think you’re going to outperform the S&P 500,” he said. “You did last year, and you likely will again this year.”
On the growth side, Hogan likes 5G, cloud security and cloud computing. He likes financials, energy, industrials and materials best among cyclicals.
Hogan, who oversees $20 billion in assets under management, acknowledges Covid-19 risks are growing. But he doubts it will spell extreme restrictions and a significant slowdown in economic growth.
“We’ve got a very short-term memory and very well-toned memory muscle towards [Covid] increases,” he said. “This current wave will likely peak and we’ll get back to focusing on things we should be focusing on like great earnings growth.”
Hogan predicts second quarter earnings season, which is underway, will solidly exceed Wall Street estimates. If they do, he expects to boost his S&P 500 year-end target of 4,400, a 3% increase from Monday’s close.
“There’s plenty of upside in this market. Volatility is part of that process,” Hogan said. “Remember, this is an economy that’s just starting to reopen and these are consumers that are just starting to get back to getting active.”
The new Quantum 3 battery energy storage system (BESS) from Wärtsilä is being describes as an intelligent, cutting-edge solution designed to meet the ever-evolving needs of utility-scale energy storage customers.
Housed in a 20-foot ISO container with single-side access, Quantum 3 is a complete AC block solution, with fully integrated and internalized batteries and string-based power conversion systems (PCS). That size was strategically chosen to facilitate global shipping and on-site transport using (relatively) small wheel loaders and top loaders, aiding in efficient on-site deployment and back-to-back configuration.
Quantum 3 also features a sustainably designed housing (read: aluminum) for low weight, as well as advanced thermal controls that include low noise levels and a low global warming potential (GWP) cooling system, makes it a groundbreaking offering for meeting customers’ environmental and decarbonisation goals.
Wärtsilä built-in enhanced fire safety features are designed to ensure customer facilities are both fire-proof and future-proof.
“These are features we have worked extremely hard on and are very proud of. We have a proven track record of safe and reliable delivery worldwide,” says Andrew Tang, vice president of Energy Storage & Optimisation, Wärtsilä Energy. “Quantum 3 will help to further strengthen confidence among customers (utilities), local communities, and first responders that Wärtsilä’s systems will stand the test of time.”
Wärtsilä is sourcing Quantum 3 components from a geographically diverse set of suppliers, with manufacturing capacity across different regions of North America, Asia, and Europe. This should enable the company’s customers to take advantage of any local tax incentives while avoiding the kind of tariffs currently impacting global battery markets.
Wärtsilä grid scale BESS Specs:
Fully integrated AC block for high system availability and optimised rack-level control to maximise system performance
Industry-leading fire safety and cybersecurity features
Increased energy density and back-to-back layout for optimum land use and efficient on-site deployment and configuration
Standard 20-foot ISO container with a convenient weight for global shipment
Sustainable design and cooling system with low GWP
Advanced monitoring, control, and optimization from battery to fleet with Wärtsilä’s GEMS Digital Energy Platform
Chinese heavy equipment manufacturer SANY has signed a strategic Agreement with European brand Alltrucks to fuel its expansion into the European market. (Probably.)
With this Agreement, the well-known brand Alltrucks will take on responsibility for the maintenance, diagnosis, and repair of the Chinese SANY eTruck vehicles in the EU. The company hopes an alliance with a trusted brand will help to alleviate customers’ concerns about adding “unknown” Chinese-built heavy equipment to their fleet.
“In Alltrucks, we have found a partner that shares our vision of sustainable mobility and has the necessary expertise and infrastructure to provide our customers with the best possible support,” explains Kevin Eichele, Head of Business Development at SANY eTrucks Europe. “Together, we will shape the future of freight transport in Europe.”
Alltrucks is a joint venture between Bosch, Knorr-Bremse, and ZF that offers 24-hour breakdown service, technical and marketing support, and an OEM-quality replacement parts network to truck fleets across the EU.
“We are delighted to be partnering with SANY eTrucks,” says Homer Smyrliadis, Managing Director of Alltrucks. “Our goal is to always offer our customers the best service. By working with such an innovative partner as SANY, we can further expand our service portfolio in the field of electromobility and make our contribution to sustainable mobility.”
The E-mixer shown (above) is the same model already in service at Pan-United Corp. It sends power to its wheels through a 6-speed transmission with significant torque multiplication, enabling it to claw up a 30% grade, even when fully loaded. (!)
Electrek’s Take
As a semi-professional journalist and passably professional person in general, I like to find at least two sources for any story. In this case, though, I couldn’t do that. As such, I feel like I need to tell you that the quotes used in this story are translated from a German email reportedly received by Electrive. The story does not appear on either the SANY Global or Alltrucks news pages, or (from the Google searches I tried) anywhere else.
It’s a significant story if it’s true – one that solves for the question of, “Where do I get my Chinese electric semi truck serviced?” with a very neat and tidy, “The same place you get your truck serviced now,” and I’m hoping that we’re just ahead of an embargo or something and that verification will come soon.
That said, take this one with a bit more than a grain of salt until that verification comes. Call it a teaspoon.
“FedEx is cultivating a strong roster of electric vehicle models that can meet the demands of our network,” says Pat Donlon, Vice President, Global Vehicles, FedEx. “In joining our fleet, the electric Workhorse W56 will be part of our story as we aim to transition our global parcel pickup and delivery fleet to all zero-tailpipe emissions vehicles by 2040.”
That fleet won’t just be cleaner – it’ll be much more efficient. According to the company’s press release, the W56 achieved an impressive 31 MPGe during FedEx’ real-world delivery route testing. That compares favorably to the national average fuel economy of 7 MPG for similar diesel delivery trucks, demonstrating significantly lower energy consumption per mile. Based on an average of 31,875 miles driven per vehicle per year, Workhorse says FedEx will be able to avoid an estimated 607 metric tons of harmful tailpipe emissions annually.
We’re well into Q3 2024, obviously, but I don’t want to be seen as unreasonably harsh on Workhorse. Heck, a few quarters here or there seems downright reasonable on a Tesla Semi timeline – I just think a bit of historical context is needed whenever we talk about startups like this. Head down to the comments and let me know if you agree.