Poised for Action…

For some years we have been supporters for investing in areas that view climate change as real. With mainstream and MAGA types on the other side of the equation we have done this with one eye on strategic hedging at various points, but with the long-term view that a tech-based approach will prevail.

With the latest trader selling panic around the effects of the Big Beautiful Tax Bill coming in play it looks like this could be the time to go full speed ahead with our Climate Tech Model. Just since the beginning of the year and in spite of all the negative talk out of Washington based climate deniers our Model is 17 percent positive versus the S&P being up only 2 percent. Since the beginning of the year we have made an addition to stocks for the model to track by adding some nuclear and uranium-based stocks to the alternative energy sector.

Here are the sectors in the model, the stocks in the Model Portfolio, and the percent of the total model in that sector:

Alternative energy: NNE, CCJ, VRT, CEG, QS, JKS, NVTS, CARR, RUN 13.4 %

Electric Vehicles: RIVN 9.6 %

Biotech: TWST, BEAM 2.3 %

General Technology / ETF’s: TECL, TQQQ, ARKK 49.9 %

Small Cap ETF : TNA 8.2 %

S&P 500 ETF: SPXL 16.6 %

In summary, the percentage allocation takes into account the 3X leverage involved in the ETF’s the Model uses. The overall concept acquires some diversification yet on a performance adjusted basis employs overall adjusted 3X leverage. At this early stage in the long cycle, alternative energy and EV only make up about 25 % of the Model’s allocation. Down the road when Washington starts taking money away from defense and putting it into climate change defense is the investment goal.

And to antagonize all the hot-shot big guys, in the end, climate change will induce everyone to come back to Chicago and its Lake Michigan.

Florida, Texas, and California with hurricanes, flooding and fires will not look so favorable.