New Energy Weekly – Correction

The U.S. stock market “correction” is ongoing

We (anyone invested in U.S stocks) are in pain. The chart below shows the performance of the S&P 500 and the Nasdaq so far this year.
The S&P 500 fell 4% and the Nasdaq fell 8% so far. Both rallied in the past week, but we are skeptical.

There is so much uncertainty right now, it’s killing the market. We do not believe that March 15, 2025, lows are bottoms. That means we are sitting on the sidelines for now. This decline isn’t over yet.

Ironically, our friends to the north don’t have the same problem. Canadian stocks are doing much better. The TSX Venture Index, home of all the junior mining companies we like, is near a 2-year high.

As a result, we have a mixed portfolio today.

We need to sell a few positions if you haven’t already. Please sell Energy Vault Holdings (NRGV). We are down 38% on our position. Let’s cut our losses. We also need to sell Ivanhoe Electric (IE). We are down 37% on our position on that one. Let’s take our lumps and move on.

One that we don’t want to sell yet is Alphamin Resources (AFM.TO). The company temporarily halted mining operations earlier this month, due to insurgents. They evacuated the mine site, so the mine won’t come back on quickly. However, the damage to the share price is done. We can ride this out and see where the peace talks go. If you haven’t sold this one yet, please hold. We’ll give the government a few weeks and see how the shares respond.

As some of you may know, Altius Renewable Royalties was acquired for C$12 per share back in December 2024. If you owned it, you made a tidy profit on that position.

In all, this is an unsettled market. The political turmoil will have real economic consequences. We need more information before we can feel confident buying any U.S. stocks.

For the Good,
The Mangrove Investor Team