Page 55 - DIY Investor Magazine | Issue 31

THE KRAKEN AWAKES ... THOUGHTS OF SALTYDOG INVESTOR Last week, Cop26 and climate change was everywhere, from the news and farming to Strictly; I am not sure what this attention will achieve in the long run, but remain hopeful. With two of the major generators of carbon, China and Russia, absent success faces a strong headwind; however, China and the USA targeting a common plan and committing many trillions of dollars to address the problem, is a huge step in the right direction. If it materialises. The arrival of 25,000 people in Glasgow by carbon generating transport, caused Greta Thunberg to rather directly, if understandably, comment you could ‘stick Cop26 up your arse’! Tackling the adverse results of changing weather patterns must be a positive, but I wonder if the UK is moving too fast to become carbon neutral at the expense of the economy? Overall, it raises important questions: • Do we want to breathe polluted air? • Do we want to eat factory produced foods and sugar that leave many people obese and with diabetes? • Do we need an over-populated planet? Personally, I don’t think so; it ‘simply’ requires some adjustment and perhaps a re-evaluation of the timeline. It reminds me of a voyage in 1960 from New Zealand back to the UK via the Panama Canal when we were charged with dropping off stores to various Pacific islands - Pitcairn, Easter Island, the Galapagos, and a small atoll in the Tubuai Islands. Raevava was an active leper colony, barely above sea level and enclosed by a reef; we had to use a lifeboat to take supplies ashore. This particular time a man wearing a top hat and a pair of shoes swam out to direct us through the reef. That is something you do not forget. It ceased to be a leper colony long ago, but I wonder if it is still above water? Over time I have invested in funds involved with renewable, sustainable, green energy creation, technology and UK small companies; both Saltydog portfolios cover the sustainable funds in the slow group; they’ve done nicely and COP26 should reinforce this. However, for reasons I cannot fully understand, the UK Smaller Companies sector is totally off the boil; it was cheap when it went up and remains cheap going down but I’m out and will wait and see. Thinking that carbon energy prices would rise because demand would outstrip supply, I bought TB Guinness Global Energy; it’s going up, but not as quickly as stable-mate TBG Sustainable Energy. I made a 50% split and will watch closely before making a total commitment. Similarly, the growth in EVs and mobile phones must put certain precious metals and commodities under strain, forcing prices up. A fund like Blackrock Gold and General would benefit from this, a rise in carbon-based fuels and the price of gold with the present fear of inflation. At Saltydog we have purchased this fund and so have I. My interest in hydrogen production is paying off with Hydrogen One Capital Growth Trust, which invests in businesses involved in creating and storing hydrogen worldwide. It’s up 18% in four months, and long may it continue. ITM and Ceres continue sideways, up one week and down the next, but if you bought early when we first discussed them at £1-2 they were a good investment. The relevance of all this will depend on your own individual circumstances. I see people of my age on the television running and climbing mountains – meanwhile each morning I feel good if I can get my leg into my underpants without losing my balance. All things are relative! 55 Diy Investor Magazine · Nov 2021