Four ‘contrarian’ trades that could withstand the market’s wild swings

Published

3 years ago

September 27, 2021

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Wilmington Trust’s Meghan Shue is out with a contrarian playbook designed to help investors grab profits during volatility.

Even as correction forecasts increase and risk appetites slump on Wall Street, she lists overweighting stocks as her first recommendation for those with 9 to 12 month time horizons.

“Over that time frame, the economy is likely to perform at above trend rates — being supported by consumer savings, cap-ex and an inventory rebuild.,” the firm’s head of investment strategy told CNBC’s “Trading Nation” on Friday. “So, we think stocks are well-positioned to outperform bonds.”

Next, Shue emphasizes buying emerging market stocks. It includes one of the Street’s most unpopular spots right now: China, which is getting hammered by new regulations targeting industries including big tech, crypto, and casinos. Plus, it’s dealing with the fallout of Chinese property developer Evergrande’s debt crisis.

“Risks are certainly elevated in China,” said Shue. “Certainly, property weakness puts some downward pressure on the economy. But we think regulatory risks are at least somewhat priced in at this point. Chinese equities are down 30% since February.”

Third, Shue, who oversees $141 billion in assets, believes investors should overweight cyclicals and temper their enthusiasm for technology stocks. Her top picks are financials, industrials, energy and materials.

“We’re also overweight the international developed equities which have more of a cyclical bend to them and tend to benefit more from a global economic recovery,” said Shue, a CNBC contributor.

Her base case is global re-openings interrupted by the Covid-19 Delta variant surge will resume in the fourth quarter, which kicks off this Friday.

Shue’s fourth play is to broadly overweight commodities on the continued impact of solid demand, inventory rebuilding and inflation.

“That transitory inflation view is pretty much consensus,” Shue said. “While we also think inflation pressures will subside as we move into 2022, we think there’s some upside risk… So, we’re putting this on as a hedge.”

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Report: Apple mulling potential partnership with Rivian – 9to5Mac

Published

3 hours ago

May 7, 2024

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Report: Apple mulling potential partnership with Rivian - 9to5Mac

Earlier this year, Apple canceled its decade-long Project Titan electric car initiative, but a new report from DigiTimes says that Apple’s electric vehicle ambitions might not be over. According to the story, Apple is “assessing the possibility of teaming up with a certain US EV startup, and Rivian is a very likely candidate.”

The report says that there is “speculation among supply chains” that Apple is investigating teaming up with an EV startup. DigiTimes suggests that Apple could take its 10 years of EV and autonomous driving research and team up with another company instead of making its own car.

While it’s “uncertain what form such a collaboration could take,” this report suggests that Rivian is the leading candidate, based on supply chain sources.

There are no other details provided in the DigiTimes report. It’s unclear what a partnership between Apple and Rivian would look like – or whether Rivian would even be interested in such an arrangement. Still, at least based on DigiTimes supply chain sources, it’s something Apple is “studying.”

9to5Mac’s Take

As much as I’d love to see a partnership between Apple and Rivian, I’m choosing not to get my hopes up about this one. The report is scarce on details, and sounds as if it’s based purely on speculation among Apple’s suppliers. I’d wait for something more concrete before getting too excited.

Perhaps most importantly, Apple could provide Rivian with some crucial cash as the company enters the challenging process of ramping up production of its new R2, R3, and R3X cars.

Do you think Apple should team up with Rivian? What kind of collaboration could Apple have in mind? Let us know down in the comments.

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Daily EV Recap: Tesla Consolidates Leadership

Published

6 hours ago

May 7, 2024

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Daily EV Recap: Tesla Consolidates Leadership

Listen to a recap of the top stories of the day from Electrek. Quick Charge is now available on Apple Podcasts, Spotify, TuneIn and our RSS feed for Overcast and other podcast players.

New episodes of Quick Charge are recorded Monday through Thursday and again on Saturday. Subscribe to our podcast in Apple Podcast or your favorite podcast player to guarantee new episodes are delivered as soon as they’re available.

Stories we discuss in this episode (with links)

UPDATE: FreeWire hasn’t closed its HQ just yet

Elon Musk’s no.2 at Tesla goes back to China as the CEO isolates himself at the top

Tesla (TSLA) launches another round of layoffs

Lilium (LILM) receives firm order from UrbanLink to put 20 eVTOL jets into service in Florida

In 2023, investment in clean energy manufacturing shot up 70% from 2022

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Microsoft signs deal with Swedish partner to remove 3.3 million metric tons of carbon dioxide

Published

8 hours ago

May 6, 2024

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Microsoft signs deal with Swedish partner to remove 3.3 million metric tons of carbon dioxide

A building of Stockholm Exergi in Stockholm, Sweden, Sept. 5, 2022.

He Miao | Xinhua | Getty Images

Microsoft signed a deal to remove to permanently remove 3.3 million metric tons of carbon dioxide with Swedish energy company Stockholm Exergi, the companies announced on Monday.

The contract with Microsoft is the world’s largest carbon removal deal to date, Stockholm Exergi said in a statement. Delivery of the carbon removal certificates to Microsoft are planned to begin in 2028 and will continue for a decade, according to Stockholm Exergi.

The Swedish company, which provides power to the people of Stockholm, plans to build a carbon capture and storage project that will permanently remove 800,000 metric tons of carbon dioxide per year.

Construction on the carbon capture project is scheduled to start in 2025. The contract with Microsoft will help the project move closer to a final investment decision in the fourth quarter of this year, said Anders Egelrud, the CEO of Stockholm Exergi, in the statement.

The carbon capture project will be installed at Stockholm Exergi’s biomass power plant, which is the largest of its kind in Europe. The plant burns waste from the forestry industry and paper mills to produce heat and electricity.

Carbon dioxide released from those materials during incineration will be removed from the gas emitted from the plant, liquified for transport and permanently stored underground.

Stockholm Exergi is selling carbon removal certificates, equivalent to 1 million metric tons of carbon dioxide, to help companies achieve their net-zero emissions goals.

“Leveraging existing biomass power plants is a crucial first step to building worldwide carbon removal capacity,” said Brian Marrs, Microsoft’s senior director of energy and carbon removal, in a statement.