A long-time market bull is tempering his outlook due to inflation.
Federated Hermes’ Phil Orlando expects the Federal Reserve will lift interest rates six times over the next two years to tame massive price increases from vehicles to shelter to food.
“Our best guess is that we will see two quarter point rate hikes out of the Fed in the second half of next year, and perhaps another four quarter point rate hikes over the course of calendar ’23,” the firm’s chief equity strategist told CNBC’s “Trading Nation” on Wednesday.
The Commerce Department reported last week prices for personal consumption expenditures or Core PCE increased 4.1% in October from a year ago. The inflation gauge, which is most relied on by the Fed, does not include food and energy.
The consumer price index or CPI also rose rapidly in October. The Labor Department’s index, which tracks what consumers pay for goods, includes food and energy.
“Given the surge in inflation that we’ve been seeing lately, it wouldn’t surprise me frankly if the Fed accelerated that pace of tapering,” he said. “Once the tapering is done, we’d expect to see some rate increases.”
That’s what could take Wall Street by surprise, according to Orlando.
“The Fed has been, I think to some degree, talking a good game along with the Biden administration in terms of the temporary or transitory of inflation,” he said.
“They’re going to remove accommodation at a reasonable pace over the next two years or so in order to try to get their hands around inflation and see if they can get that genie stuff back into the bottle,” he said.
In a rising rate environment, Orlando particularly likes stocks within the energy,materials and industrials space due to their ability to recoup rising business costs, raise prices and boost margins.
“What we’re doing is trying to invest in the companies that are navigating this situation in a reasonably good shape,” Orlando said.
Eco Wave Power held a grand opening for the first onshore wave power station in the US today, at the Port of Los Angeles. The station is just a pilot so far, but Eco Wave Power has big aspirations.
The station is on the site of AltaSea, an “ocean technology hub” in a warehouse at the Port of LA.
The idea behind wave power is to use motion of waves in the ocean to generate electricity. Waves are relatively constant, and hold more power than wind, given that water is so much denser than air. They also add another dimension to renewable power generation, which can help reduce intermittency.
However, wave power has been considered for centuries and has been tried several times, with little evidence yet of its scalability. The industry, such as it is, is definitely still in the development stage. So this pilot program has a big hill to climb if it’s going to succeed as a demonstration.
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Eco Wave Power’s project is rather humble for now, consisting of seven blue painted buoys, which the company calls “floaters,” approximately in the shape of boats. The floaters are designed to lift and drop with the waves, driving a hydraulic ram to create pressure in a bank of storage tanks in a nearby shipping container (the “conversion unit”), which is then used to spin a turbine generator.
The project will run for two years, though it’s still primarily for demonstration and research purposes. Ocean environments are caustic and chaotic, so there are a lot of problems that could come up. But Eco Wave Power has tried to mitigate one of the potential problems by using biodegradeable hydraulic fluid, just in case there’s any sort of leak.
There could be potential terawatts of power generation available from wave power nationwide, but that would require deployment over much of the US coastline. Eco Wave Power says it could power 60,000 homes with a larger deployment, taking up around 8 miles of breakwater structures built around the Port of LA/Long Beach complex. The system is designed to be modular, so that more floaters and shipping containers could be added depending on the available area.
Alternately, the power could be used to help fuel the port itself. Ports tend to be dirty areas, and Long Beach/LA is no difference. Air quality in the area is quite poor, which is why the port is rushing to clean up pollution. Wave power could provide some onsite power for port operations, and perhaps help to run electrified port equipment.
And if the project were big enough to export power beyond the port, the benefit of being in a port is that there are always nearby electrical substations, so it’s not hard to find a grid connection.
But as of now, we’ve got 7 floaters to start.
Currently, the floaters are placed inside the breakwater, in the channel that is protected from ocean waves. Therefore, they’re not going to generate nearly as much power as if they were placed on the outside of the breakwater itself, where waves are larger, more consistent, and much more powerful. But this is a test project, after all.
At the opening event, minutes after the floaters were dropped into the water, we saw them turn the system on and generate… 1.6kW worth of power. It’s a pretty calm day, after all, and the system hadn’t really had time to build up any pressure.
Eco Wave Power says that a setup of this size could have a potential output of 100kW, though we did get some conflicting numbers on that, and we suspect the numbers change drastically based on positioning and water conditions. It has one grid-connected power station in Israel which has been operational for a few months now, but we asked how much energy it has produced, and the company said that it had not released that information yet.
The new LA station is actually the first onshore wave power station in the US, though there has previously been an offshore wave power pilot in Hawaii. There are benefits and downsides to each method, but onshore is cheaper to install and maintain, if you can get access to the shoreline needed – and port breakwaters are a good opportunity for that.
Eco Wave Power says it also has projects in Taiwan, India and Portugal coming soon. It formerly operated a pilot program in Gibraltar. Its projects so far have been in relatively protected areas (Israel and Gibraltar are both on the Mediterranean, and LA is inside the port), but it has future projects coming that will be exposed to the ocean, like in Taiwan and Portugal, which should offer a whole new set of challenges – and unlock much more power, if the company is able to harness the turbulence of the Pacific.
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We knew there were more in the works. After the electric SUV and sedan, starting at about $50,000, Lucid (LCID) confirmed it will launch a third midsize EV. Here’s what it will look like.
Lucid confirms the third $50,000 midsize EV
Former CEO, Peter Rawlinson, promised over two years ago that Lucid would “drive down the costs of EVs” with new battery, powertrain, and other advanced EV technologies.
The Air, Lucid’s first model, is already significantly less expensive than when it first launched. In 2021, Lucid introduced the Lucid Air Dream Edition, which started at $169,000.
Today, you can snag a 2025 Lucid Air for under $70,000, and this is just the start. Lucid is planning an entirely new platform to power a new family of midsize electric vehicles that will start at around $50,000. According to Rawlinson, Lucid’s midsize models are aimed “right in the heart of Tesla Model 3, Model Y territory.”
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Lucid told Electrek last year that the company planned to launch three new midsize EVs on the platform: an electric midsize crossover, sedan, and a third vehicle that remained a mystery, until now.
Lucid midsize electric SUV teaser image (Source: Lucid)
Speaking at the Munich Motor Show this week, Lucid’s interim CEO, Marc Winterhoff, confirmed the third $50,000 EV will be based on the Gravity X concept.
Lucid unveiled the Gravity X (pronounced Gravity Cross) last month, an all-terrain, souped-up version of its electric SUV.
The Lucid Gravity X (Source: Lucid)
The concept was loaded with off-road upgrades and other goodies like all-terrain tires, a lifted suspension, tow hooks, and a widened, more aggressive stance. It also featured a unique new roof rack system with built-in LED lights.
On the inside, Lucid added premium leather seats, high-performance floor mats, a microsuede steering wheel, and a few other upgrades for off-road adventures.
The interior of the Lucid Gravity X (Source: Lucid Group)
Lucid said every detail was intentional, suggesting we could see the concept arrive in production form. Now, it has been confirmed.
Winterhoff also confirmed at the event that Lucid has the funding “to get us into the second half of next year,” when the company plans to begin production on the midsize platform. Lucid will ramp up output of the standard midsize SUV first, “so that tells you that additional funds will be needed to get there,” Winterhoff added.
The Lucid Gravity X (Source: Lucid)
If everything goes according to plan, the rugged midsize SUV will likely arrive sometime in early 2027, followed by the sedan shortly after. According to Car and Driver, Lucid may also offer the midsize platform for fleets, using its Gravity robotaxis through its partnership with Uber.
When it arrives, Lucid’s rugged new midsize SUV will likely go head-to-head with the Rivian R2/R3, Jeep Recon, Scout Terra, and a few others set to hit the market over the next few years.
What are your thoughts on an electric midsize Lucid off-roader? Would you buy one for around $50,000? Rivian aims to launch the R2 at around $45,000, but an off-road version (“X”) will likely cost slightly more. Which one are you taking?
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Is the time finally coming? Will we see the electric Ford Bronco we’ve been waiting for? Is it a major rebranding? After deleting every post on its Instagram page, what is Ford up to?
Is Ford teasing an electric Bronco, a major rebrand?
The Bronco is a fan favorite and one of Ford’s top-selling nameplates, so why not an electric version? Well, that may not be a pipedream after all. Or, maybe we are just being hopeful.
Either way, Ford just cleared its entire Instagram page across multiple accounts. The Ford Bronco, Ford Electric, Ford Mustang, and Ford Trucks pages have all been wiped.
The accounts now have one sole story that shows the Ford logo, followed by its “Built Tough” branding, a Mustang logo, a Bronco logo, a Lightning bolt, and the side-eye emoji.
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So, what exactly is Ford teasing? Most of the speculation on social media believes Ford is gearing up to introduce a major rebrand, which could include a new look for some of its top-selling models like the Bronco, Mustang, F-150 Lightning, and others.
(Source: Ford)
On Monday, Ford introduced the new 2026 F-150 Lightning STX variant. The new trim replaces the current XLT model with added driving range and off-road capability, but the same starting MSRP.
Although the American automaker has delayed several major EV initiatives, including its three-row electric SUV, Ford is betting on its new low-cost platform for the future.
Ford Universal EV Platform (Source: Ford)
The automaker promises its new Ford Universal EV Platform will be key to unlocking more affordable, more efficient electric vehicles.
Ford’s team in California is led by former Tesla engineer Alan Clarke and filled with former Rivian, Lucid, and Apple employees. The company will use LFP batteries manufactured in Michigan with licensed tech from China’s CATL to lower costs.
Up first will be a midsize electric pickup that will start at around $30,000. It’s expected to arrive in 2027. However, the platform is designed to cover nearly all segments, including trucks, crossovers, SUVs, and possibly sedans.
Ford seems to be up to something big here. It’s not often an automaker wipes its entire social media account. Check back soon for the big news.
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