Massive changes coming to global energy … six catalysts driving growth this decade … Matt McCall’s latest megatrend
There’s a major change happening today and it’s offering investors the chance to generate lifechanging wealth.
From our trend and technology expert, Matt McCall:
For more than a hundred years, producing “utility scale” amounts of power — enough to power large cities — hasn’t changed much.
Fossil fuels like coal and natural gas started out as the primary power generation fuels … and they still are.
That’s why a major change to the way we produce electric power doesn’t involve tens of billions of dollars … or even hundreds of billions of dollars.
It involves trillions of dollars.
In Matt’s latest issue of Investment Opportunities, he goes on to note that the electricity business is about to change in a massive way.
Those who know about this change, and its trillion-dollar implications, stand to make enormous amounts of money.
Back to Matt:
The mainstream media isn’t talking about it yet, but we are on the verge of a power revolution.
As I often say about business and innovation, the bigger the change, the bigger the gains ….
Well, it doesn’t get much bigger than the change I’ll tell you about this month.
Today, let’s make sure you’re one of the investors who knows what’s headed our way. We’ll do this by peeking into Matt’s latest issue to see what’s behind this trillion-dollar change.
***The transition from dirty to clean energy
For any newer Digest readers, Matt is an expert thematic investor.
In other words, in Investment Opportunities, he finds the massive trends that are reshaping our world, and by extension, our investment markets. He then identifies the specific stocks best positioned to ride those trends higher.
Today, many of these trends involve technology. And that’s again where Matt has been fishing this month — specifically, the interplay between global energy and technological advancements.
He begins his issue with a look back at the origins of our power-generation system.
Starting with Thomas Edison’s breakthrough that brought us into the electric age, Matt then pivots to the coal era.
Throughout the 1900s, the world relied nearly exclusively on “dirty” fuel for its electric needs.
While this low-cost fuel source produced vast amounts of energy, it produced a great deal of pollution.
Matt points toward the climate change that many of the world’s top scientists partially attribute to the burning of fossil fuels.
Today, this concern is driving the trillion-dollar change that’s coming our way.
From Matt:
This is why “climate change” is often cited as the number one worry for people around the world. Many see it as the biggest crisis of our time.
And many people see renewable energy, which comes from fuel sources like solar energy and wind energy, as the solution.
***Renewable energy is finally becoming a reasonable option
The amount of energy created by the sun is hard to grasp.
In 2007, an article in Scientific American estimated that the energy in sunlight that hits Earth over a period of just 40 minutes is equivalent to mankind’s total annual energy consumption.
The problem is that, up to now, we’ve had challenges capturing and storing this energy.
This is changing …
From Matt:
But in just the past decade, a solar revolution has begun … one that will lead to the biggest change to the energy market in a century …
Last year, only about 2% of electricity in the U.S. came from solar power. Right away, you can see the huge growth potential.
At the same time, solar accounted for 18% of all new energy capacity last year. That’s nine times the amount of the current power.
You can see where this is going.
There are several major catalysts that will continue the momentum that clean energy — especially in solar power — has today.
***The catalysts driving solar higher
At this point in his issue, Matt highlights six tailwinds behind the solar sector.
Here’s the summation:
Cost effectiveness …
Bloomberg NEF predicts that by 2025, the cost to generate power from solar will be cheaper than oil for the first time ever.
Global government support …
The ongoing shift away from fossil fuels has been a hot topic for governments and corporations for the last decade.
In the next 10 years — the Roaring 2020s, as Matt calls them — the conversation will escalate and result in big changes in the multi-trillion-dollar energy sector.
Current global policy …
The European Green Deal was launched in December 2019. It aims to create a region that has zero net emissions by 2050.
Achieving this will require heavy reliance on solar power.
The next U.S. president …
Matt notes that President Trump has discussed an infrastructure plan that will cost more than $1 trillion dollars — a decent sum of that going to clean energy.
Joe Biden has a clean energy plan that is over $2 trillion.
Regardless of who wins, Matt expects spending on solar will climb into the trillions this decade.
Growing focus on ESG …
One of the fastest growing investment trends is ESG, standing for “Environmental, Social, and Corporate Governance.”
Solar power is a major trend within ESG investing, and it’s been suggested that big institutions could mandate 50% of investments fall into this category in coming years.
Matt writes that this would lead to hundreds of billions of dollars, if not more, flowing into ESG-related stocks.
U.S. solar pipeline projects …
At the end of last year, the pipeline of solar projects at utility companies was the largest in U.S. history.
Matt writes this is important because utility scale projects are the largest, resulting in the most amount of money flowing into the industry.
***How to play a rising solar sector
If you’re considering solar and are looking for one of the simplest ways to play it, consider the Invesco Solar ETF, TAN. It holds many of the solar sector’s top names.
Below, you can see TAN destroying the S&P here in 2020, up 124%.
However, if you’re looking for an even more dynamic way to play solar than an ETF that includes dozens of companies (some that don’t perform as well as others), Matt just added four new stocks to his Investment Opportunities portfolio.
One that I find especially interesting is a nanocap that’s focused on the intersection of solar and electric vehicle charging.
Matt writes that during the presidential debate, Joe Biden said he would build a network of 500,000 charging stations in the U.S. in his plan for climate change.
Even President Donald Trump said he was behind EVs during the heated debate.
Matt has found a company that is perfectly positioned for this growth.
Next year, revenue is expected to jump 265%. By 2024, revenue is expected to reach $88 million — a 15X increase in just four years.
In terms of investment returns, Matt believes 11X growth is in-play over the next half-decade.
To learn more as an Investment Opportunities subscriber, click here.
As we wrap up, there are massive tailwinds coming together behind renewable energy — solar in particular.
If your portfolio doesn’t have exposure, give it a look. If not, you risk missing out on what could be one of the most explosive sectors of the decade.
Have a good evening,
Jeff Remsburg
