2020 Q3 EdgePoint commentary
This quarter, portfolio manager Geoff MacDonald looks at the high price that investors are willing to pay in search of certainty and talks about why investors should crave uncertainty in investing.
This quarter, portfolio manager Frank Mullen discusses the changing outlook for fixed income and how you can ensure it plays the right role for you in the future.
Year-on-year operating EPS growth declined 33% as of Q2 2020. The decline in profit margin accounted for 24% while revenue declined 9.3%.
And here is the attribution of global equity returns.
There are now more ETFs than stocks listed on the NYSE and Nasdaq
South Sea bubble
Hydrogen announcements are coming thick and fast. This week alone, hydrogen-powered double-decker buses arrived in Aberdeen, Britain’s oil capital; Hyundai delivered seven fuel-cell hauling trucks to Switzerland; and Toyota partnered with Hino to develop its own hydrogen-powered big rigs for the U.S.
What’s the problem? Hydrogen is the most abundant molecule in the universe, but it isn’t present on Earth in its free form. We must first produce it. That can be done cleanly by splitting water into hydrogen and oxygen using renewable electricity from solar and wind power. But the cheaper and more prevalent method is to extract it from natural gas or coal, which emits carbon dioxide and locks us into further exploitation of fossil fuels. Projects touting hydrogen’s green credentials often rely on sequestering waste CO2 from its production, a technology still untested on the scale required.
The availability of clean hydrogen fuel is very limited. There are currently plans for more than 60 gigawatts of green hydrogen production globally, but less than half will be available by 2035. Today, making the hydrogen gas generates more carbon emissions globally than the airline industry, according to Bank of America.