Here's why our favorite way to invest in the clean energy transition jumped out of nowhere - CNBC
Here's why our favorite way to invest in the clean energy transition jumped out of nowhere
Every weekday the CNBC Investing Club with Jim Cramer releases the Homestretch audio feature in time for the last hour of trading on Wall Street. Here's today's edition. There is a sense that the financials are going to win. They have been crushed by the rate hiking cycle. The key thing here especially from the investment banks, as soon as the market is going to get a sense that the Fed is done raising rates and potentially cutting in the future, there will be an influx of mergers and acquisitions activity, a pickup in deals and a potential thawing of the IPO market. There's already been deals flowing through and Club holding Morgan Stanley is starting to rally in anticipation of that. Morgan Stanley has a strong dividend yield, M & A and IPO business and a strong business in wealth management. Jim Cramer called these the "magic combo" that should help boost the stock price over time. The move in Linde on Tuesday of more than 4% in midday trading. The key event here is there's speculation that Linde will be added to the Nasdaq 100 and replace Seagen now that Pfizer has received regulatory clearance to complete its acquisition. Seagen will be delisted when the deal goes through later this week, and a new stock will need to be added. Linde is a betting favorite because it is the largest company waiting to get in. People are trying to get ahead of this possible announcement. On the downside, however, Coterra is trading lower as energy and natural gas continue to break down. It's a small name we're battling. But we're glad we're diversified. Elsewhere, Walt Disney also ticked lower as pressure remained on management to cut costs and continue to turn around the business. Jim still believes Disney "is a very good stock to own." (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Related Knowledge Center: Climate economics
Climate change is now a driver of the world’s economy. The impact is profound:
- Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
- Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
- Investment in carbon capture and storage technologies is increasingly rapidly.
- Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases.
On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”