New Energy Weekly – Some Comfort

Here’s something we can take some comfort in

Our portfolio outperformed the overall exchange on which they are listed! 
The TSX Venture Exchange performed particularly poorly over the last two years. As you can see from the chart below, the TSX Venture fell 35% on average over that period. By contrast, the S&P 500 is flat over that same period.

That speaks to the market’s distrust of small, higher risk stocks. The high-risk, high-reward money is on the sidelines. There is an existential fear that something bad could happen. That’s keeping investors away from inherently risky stocks. 

We can only be patient right now. There is a lot of fear in the market. That tells me we should be near the bottom. As we move further from the expectation of a bank collapse and recession, the money should return to these higher risk stocks. And we’re able to profit from that return.

Happy Easter to those who celebrate.

Sincerely,

Matt Badiali