BBBY Soars 316% – Is the Bull Market Back?
The S&P 500 Index, which tracks the largest stocks in the U.S., is up 17% from its lows in June.
It hasn’t recovered all the way to its recent high-water mark from April this year. But it’s trending in that direction.
And meme stocks are back, too.
In the past few weeks, investors on social media have bid up shares of mall stalwart Bed Bath & Beyond (Nasdaq: BBBY). It’s up 316% in the past month, as of Tuesday’s closing price.
Call me crazy, but I think that investors jumping into meme stocks instead of focusing on safety is a sign of a happy market.
This is a turn from just a few weeks ago when financial experts were debating which recession indicators to rely on.
It’s likely that we’ll see another dip in the near future as the market evens out. But Congress’ Inflation Reduction Act, signed into law this week, seems to have turned the tide.
It will cut the costs of many medications and increase taxes on corporations. It also contains about $370 billion in investments into combating climate change.
Funds that focus on environmental, social, and governance (ESG) issues have already benefited.
The iShares ESG Aware MSCI USA Fund (Nasdaq: ESGU) has risen 18% from its lows in June, eking out a gain over the S&P 500.
It’s one of the largest ESG-focused funds in the country, and analysts expect it to rise even further.
Elsewhere, optimism is spreading.
CNBC reported that Carmichael Roberts, who co-leads the investment committee of the Bill Gates-founded Breakthrough Energy Ventures, expects “venture capital dollars will flow in a lot faster.”
“The calls that I’m getting now – tremendous, already … There was already a big groundswell around climate, but this just really boosted even further,” he told the network.
These moves make me even more optimistic about our investment strategy.
Investing in the future has always been part of our plan. And now it seems like the financial world is moving from recession fears to focusing on the future, too.
We’re happy to have you on board.
Now, on to the news…
Numbers to Know
Amount of U.S. adults polled that support Congress’ new climate and clean energy laws. Only 29% said they’re opposed to the laws, and 18% responded that they aren’t sure. The online survey was conducted by YouGov and polled 1,500 adults with various demographics. (YouGov)
Number of zero-emission buses the Biden administration announced it will fund. The Federal Transit Administration said the new purchases will nearly double the amount of zero-emission buses on U.S. roads. According to Transportation Secretary Pete Buttigieg, the buses will provide “more affordable and reliable options to help people get to where they need to go.” (The Hill)
The target for megawatts of offshore wind power set in Massachusetts’ climate and clean energy bill. Gov. Charlie Baker signed the bill on Thursday. The new investments in clean energy will help the state meet its goal of reducing emissions 50% by 2030. (The Washington Post)
What’s New in Sustainable Investing
BMW and Toyota plan to release jointly-built fuel cell cars in 2025
BMW sales chief Pieter Nota says hydrogen-powered cars have a few advantages over electric vehicles. For instance, fuel cell cars can be refilled in just a few minutes. In addition, hydrogen models aren’t as prone to supply shortages. The two auto giants formalized their green vehicle tech alliance back in 2013. They’ve collaborated on a number of vehicles over the years, including the Supra sports car. (Engadget)
As Dodge kills off muscle cars, Polestar is making an electric one
Dodge announced it will end production of its popular Challenger and Charger muscle cars with the 2023 models. Meanwhile, Polestar plans to launch its own electric muscle car, called the Polestar 6, in 2026. Polestar CEO Thomas Ingenlath describes the vehicle as “a perfect combination of powerful electric performance and the thrill of fresh air with the top down.” (Yahoo Finance)
Links We Like
“There is legislation headed toward the home stretch that will give EVs not only new legitimacy in the eyes of the auto market, but potentially lucrative perks to automakers and consumers who decide to bet on electric vehicles as their chosen mode of transportation – and investment.” (TheStreet)
“The J+ BOOSTER 2 is like a Swiss army knife of EV charging technology and makes any concerns about vehicle range a thing of the past.” (Forbes)
“Many young people are depressed because they feel climate change cannot be stopped. We want to offer them hope by showing that our world can get all its energy needs from renewables at a price below that of fossil fuels.” (Innovation Origins)