Finimize - 😔 Coal’s setting a worrying record

Coal use is due to hit an all-time high | Hedge funds bet against hard-pressed bitcoin miners |

Hi Reader, here's what you need to know for December 19th in 3:09 minutes.

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Today's big stories

  1. Data showed that coal use is cruising toward a record high this year
  2. Here’s a little-known tool for better stock predictions – Read Now
  3. Hedge funds bet that bitcoin miners are skating on thin ice

Coal’s Not Just For Christmas

Coal’s Not Just For Christmas

What’s Going On Here?

A report out on Friday showed that this year’s coal use is set to hit a record high.

What Does This Mean?

Countries around the globe vowed to ditch coal and embrace cleaner energy at 2021’s high-profile UN climate talks, but little did they know that the world had other plans in store. Before long, Russia invaded Ukraine and disrupted energy supplies the world over, forcing countries to turn back to the black stuff just to keep lights on – especially during the winter. That’s meant that instead of shunning coal, we'll have used a record-breaking 8 billion plus tons of the stuff by the year’s end, trouncing the record set back in 2013.

Why Should I Care?

For markets: No smoke without fire.
The International Energy Agency thinks coal will stay hot for a few years. Sure, some regions like Europe will transition to cleaner energy – but that’ll be offset by demand for the lucrative black lumps in emerging economies like India and Southeast Asia. That’s troubling news for global emissions: after all, coal produces almost twice as much CO2 as natural gas, whose environmental record is already, ahem, less than optimal. And get this: And get this: with demand for coal boosting prices and producers’ profits, nearly half of coal companies are expanding right now, which could be a major setback for climate goals.

The bigger picture: Every cloud has a carbon lining.
Coal isn't the only thing standing in the way of our net-zero goals: it turns out that the world’s ever-expanding digital footprint is also part of the problem. Whopper computing outfits like cloud data centers need tons of water and electricity to keep running, which racks up emissions aplenty. In total, digital operations actually create around 4% of global greenhouse gasses – almost double the amount produced by commercial flights. With any luck then, 2023’s hot environmental trend will involve deleting your online presence and disappearing from the internet.

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Analyst Take

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Valuations Are Fine, But This Secret Indicator Works A Lot Better
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Disclaimer

This content is for US investors only, if you are not a US investor please ignore this content. This content is a paid advertisement for Upexi (NASDAQ: UPXI) from Interactive Offers and Finimize. This is not Finimize editorial content. Finimize received a fixed fee for producing, hosting and promoting this content on behalf of Upexi, totalling $23,000. Other than the compensation received for this service, Finimize and its principals are not affiliated with either Interactive Offers or Upexi. Finimize and its principals have no ownership in Upexi. The content on this page should not be taken as advice, an endorsement, or a recommendation from Finimize and its principals to buy or sell any security. Finimize and its principals have not evaluated the accuracy of any claims made on this page. Finimize and its principals recommend that investors do their own independent research and consult with a qualified investment professional before buying or selling any security. Investing is inherently risky and capital is at risk. Past performance is not indicative of future results.

A Miner Disaster

A Miner Disaster

What’s Going On Here?

Hedge funds are upping bets that hard-pressed bitcoin miners will fail.

What Does This Mean?

It's a rough time to be a bitcoin miner: sure, they don’t have to head down dusty shafts like real miners – but running a network of supercomputers to solve calculations and create new coins isn’t a walk in the park either. For one, the price of bitcoin has dropped by about two-thirds this year, which means that miners’ rewards are thinning out. And for another, the cost of powering those energy-hungry computers is only going up right now. Plus, the meltdown of cryptocurrency exchange FTX probably hasn't done much to cheer up the miners either – especially since some of them have taken out loans to expand operations. Those injuries mean that hedge funds smell blood in the water, and they’re betting that shares in crypto miners will drop even further. Case in point: a key measure of those bets, called short interest, jumped sharply in recent weeks for Marathon Digital, one of the biggest US-listed miners.

Why Should I Care?

For markets: Crypto’s cooling.
The shockwaves set in motion by the FTX debacle are still hitting crypto markets. In fact, the latest data from Binance shows that demand for one key type of bitcoin contract – a darling of speculators and a prime indicator of trader sentiment – has taken a nosedive since the start of November. And that makes sense: analysts think that big institutions will keep crypto at arm’s length until the FTX fallout has fully run its course.

The bigger picture: Patience is a virtue.
Cheer up, crypto buffs: you might not have to wait too long for the market to bounce back, with most big banks and investment managers forecasting a pickup in 2023. Some analysts reckon that while bitcoin could go as low as $10,000 – from its current price tag of around $17,000 – it should hit around $30,000 in the second half of 2023.

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💬 Quote of the day

“I like pigs. Dogs look up to us. Cats look down on us. Pigs treat us as equals.”

– Winston Churchill (a British statesman)
Tweet this

Get the exclusive EV scoop

The timing of this one’s a good ‘un.

Unless you’ve been living under a rock, you’ll have noticed the spectacular collapse of FTX, and the subsequent arrest of the crypto exchange’s founder.

So the scene was set for us to have a dynamic sit-down conversation with one of the biggest faces in crypto, Anthony “Pomp” Pompliano.

At our Modern Investor Summit, Pomp told us whether he sees this as the end for bitcoin, or a turning point for crypto.

Watch the video to discover his projections.

Watch The Video

CHART OF THE WEEK

Online fashion giant Shein adds an unbelievable 60,000 new items of clothing to its website each month, dwarfing its nearest rival Asos. No doubt that capacity has played a part in its almost 2,500% revenue growth since 2016, bringing it close to high-flying industry leaders Inditex and H&M. But what you can’t see in this chart is the effect that growth has probably had on the environment. Case in point: producing just one pair of jeans is estimated to take 7,250 liters of water – the same amount the average person drinks in over 10 years.

Created with Genuine Impact.

🌍 Finimize Live

🥳 Coming Up This Week…

All events in UK time.

📈 How To Forecast Long-Term Returns: 1pm, December 20th
💰 How To Tactically Invest In 2023: 1pm, December 21st

👀 And After That…

🌪 Preparing Your Strategy For A Volatile 2023 And Beyond: 12pm, January 11th
🎙 Live Q&A With Finimize CEO Max Rofagha: 1pm, January 12th
👀 How To Spot The Best Long-Term Investments: 1pm, January 17th
📑 The Risks And Regulations When Investing In Crypto: 10am, January 27th

🎯 On Our Radar

  1. No con-fusion. A physicist explains December’s nuclear breakthrough.
  2. Art to die for. UK cops raided a gallery after mistaking this sculpture for a body.
  3. Scrap the skyscrapers. Low-rise buildings are the future of housing.
  4. Buy Twitter. You can’t buy its shares, but you can grab the firm’s office furnishings.
  5. A watershed moment. A Berlin aquarium burst, spilling 1,500 exotic fish.
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