Texas-Sized Spending

Hey Influence Traders,   In my latest Weekly Roundup, I named the Texas power grid as the inaugural Power Loser of the Week.   But as the old saying goes, “never let a good crisis go to waste” …   Green energy took a few licks down in Texas, but the Biden Administration is making a #PowerMove on the crisis.   Option Pit Pro Before we get into the Lonestar State, I want to discuss a #PowerMove that I’ve been making.   I know DC and how its #PowerMoves impact various sectors of the economy and therefore the markets.    I also understand what drives company performance and can connect the ripples created in DC to certain stocks.    Recently, though, I’ve been honing my options trading skills …   Fortunately, as a lawyer I’m pretty good at digging up secrets, which gave me enough dirt on    Mark Sebastian to get him to give me access to Option Pit Pro   I’m just kidding, of course, Mark is squeaky clean (well, maybe not during the Big Freeze of ‘21, but normally).  Nonetheless, I am utilizing Option Pit Pro up my game.   It is never too late to learn something new, and no matter how much you know, there’s always someone smarter than you.   With Option Pit Pro you get PROS — this room isn’t just about access to Mark, but access to a group of high level traders who collaborate on ideas, tactics and strategy.   Whether you’re a novice or an experienced trader, make a #PowerMove with Option Pit Pro and up your game.   Inflation-Inshmation … Let’s Spend Money   The Biden Administration is leveraging the events in Texas to push its climate agenda. This will take the form of a green infrastructure spending bill.   Even though such spending will stoke inflation fears, the Treasury and the Fed have vowed to let the economy run hot.   A Texas Smack Down   Texas took it on the chin last week.   A massive storm ravaged the state causing an equally large crisis.   The big story was power and water being knocked out for millions of residents.   Many on the right, as well as fossil fuel executives, blamed the green energy industry and immediately pointed out the error of the Biden Administration’s plan to cancel the Keystone XL pipeline.   Some believe these events put the Administration’s plans to bring forward a $3-4 trillion green infrastructure spending project on its heels …   Never Let A Good Crisis Go to Waste But the word on the street in DC is that the crisis has emboldened the administration.   The White House and its supporting cast immediately blamed climate change and the fossil fuel industry for every problem Texas has ever experienced.   They then aggressively laid the groundwork for the massive spending bill.   The narrative is set that Texas’s reliance on fossil fuels and power grid deregulation are at fault. So the administration is calling on green infrastructure spending and energy regulation to fix the state’s problems.   In an ironic move, the Administration argued that California’s massive regulations are proof that a highly regulated energy sector operates more efficiently …   Californians, meanwhile, were unable to hear those accolades, as they are in the midst of rolling blackouts.   Inflation-Inshmation No Worries Economists on the right and left have voiced concerns that all of the planned money that will be pumped into the economy will cause massive inflation.   They’ve already predicted that the signs are in place for a “super-charged” rebound when the effects of the pandemic lighten and the world opens up …  
  • Retail sales are already up
  • While unemployment is still high, new claims are way down
  • Business investment is up
  • People are sitting on trillions in cash
  This could line up to be the perfect storm of a hot economic bounceback.   In fact, Goldman is calling for the economy to grow by 6.8% this year and unemployment to drop to 4.1% by December.   Fed Inflation Response Despite the stage being set for inflation pressures, Fed Reserve Chairman Jerome Powell is not worried about inflation and has pledged to support a robust economy even in the face of inflation.   He is maintaining that the recovery is still uncertain and that “there is a long way to go.”   As such, the Fed plans on holding rates near zero to encourage lending and spending.   The Post Office is NOT On Board The United States Postal Service is apparently not on board with the move to green energy …   A key component of Biden’s green plan is to transition to electric commercial vehicles.   The USPS recently awarded a multi-billion dollar 10-year contract for its vehicle fleet.   In a blow to Biden’s green plan, the USPS chose Oshkosh Defense (TICKER: OSK), a military vehicle manufacturer, to build its next generation postal truck. (I’m picturing Mad Max delivering my mail).   It chose OSK over electric vehicle maker the Workhorse Group (TICKER: WKHS).   The market thought WKHS was a shoe-in, and rewarded it with an upswing over the past few months … But immediately after the announcement, WKHS’s stock price was cut in half.   The weather is causing DC to make ripples. Despite some setbacks, the Biden Administration is capitalizing on a crisis and making #PowerMoves.   Cutting Through the Noise for You.   Frank  

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.