Hey Influence Traders,
Is there any ink left in DC?
More than 36 executive orders already from President Biden and counting …
My hand would have cramped up with all that writing!
The big move was halting oil and gas drilling on Federal lands … which drew immediate praise and scorn depending on the side of the aisle. (You can guess which was which.)
That’s a double whammy on the heels of the Keystone Pipeline shutdown, which is estimated to have cost 11,000 direct and more than 60,000 indirect jobs.
The Ute Indian Tribe in Utah claimed the drilling moratorium violates the tribe’s sovereignty and an industry group has already brought a lawsuit against it.
But Biden knows that his policies will not move quickly and there is always opposition.
Former President Trump fought for a year to halt drilling off the Atlantic coast (which he finally won).
(((Ripples Are Moving in Many Directions)))
There continue to be many ripples in the political pool …
Some seem to be colliding, but if you look closely they are also aligning.
Here are a few:
- Janet Yellen has been confirmed as Treasury Secretary. She is going to start looking at stimulus plans and that means infrastructure spending – demand!
- Biden is taking swift steps to limit oil (Keystone and permitting) – reduced supply!
- Biden signed a “Made in America” executive order – good for American suppliers!
- Corporate America, including the oil/gas and automotive industries, are accepting that tighter emissions standards are on the horizon and are ramping up to meet that new reality, not slowing down – demand for raw materials is going up!
- Green infrastructure spending requires steel and petroleum – demand is going up!
While they might not be as fast out of the gate as President Biden, some ripples are aligning and will pick up speed.
(((Patience Is a Virtue)))
There is always noise in D.C.
That noise often causes ripples.
Sometimes ripples amplify each other, and other times they slow each other down.
I’ve talked a lot about steel and petroleum, which are going to be good long-term plays that will benefit from climate policy.
But they are not quick hits, and some ripples in DC collided – yes, Biden is limiting supply and increasing demand, but opposition might slow down those moves.
That slowing will temporarily cause growth in those sectors to move like … heavy crude.
But they will move.
Be patient … stay the course. More to come on this.
Cutting Through the Noise for You,
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