Who Has the REAL Power

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"In absolutes, we may lose our way… The patterns could guide and they could trap. One had to remember that patterns change."- Frank Herbert  Children of Dune

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The New Power

The past century has been about soft power. Those who had brains and influence conquered the old brutes who had the hard power. Software companies became more valuable than energy companies. Yet, the confluence of AI, stablecoins/crypto, EVs, and deglobalization may be reversing that reversal. And that matters. Every day we observe examples pointing to the reemergence of hard power's power. Having access to natural resources and energy is no longer just a commodity. It is true power. Not that insight and influence won’t continue to matter. Of course they will. It's just that your ability to access that soft power will be constrained by your access to hard power. If you cannot secure natural resources and energy, it will be increasingly difficult to secure the best insight and influence. China has outpaced the US in energy production since 2011. The US has been more or less flat. 

Many US leaders feel the pressure. They understand that this must change, or we are going to lose the AI war - among others. This, we believe, makes energy infrastructure a compelling area for investment.  My partner Steve Korn shares additional color in this 1-minute video ...

What to Do?

We need to consider these important questions:

• Where will all this new power come from?

• Which countries and companies ultimately win in this regime shift? 

• Could limited energy supplies hamper economic growth?   

• How should we best position (or reposition) our portfolios?

  
  

If you’d like to learn how Fielder is answering these questions and positioning this theme in client portfolios, please reach out. 

Yours in the Field,

Frank Byrd, CFA

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IMPORTANT DISCLAIMER: This note is for educational purposes only. It is not a recommendation to invest in any particular security or strategy, since anything mentioned herein may be completely unsuitable for some investors. Speak with your financial adviser before investing. While the information presented herein is believed to be accurate, Fielder Capital Group LLC (Fielder) makes no express warranty as to the completeness or accuracy. Fielder is under no obligation to notify you of any errors discovered later or of any subsequent changes in opinions. Fielder’s employees are not attorneys or accountants and do not provide legal, tax, or accounting advice. Financial planning and investment strategies have the potential for loss. It should not be assumed that any of the securities, transactions, or holdings discussed will prove to be profitable in the future or that investment recommendations or decisions Fielder makes in the future will be profitable or will equal the investment performance of the securities discussed herein. Investing involves risk, including the potential of complete loss of principal amount invested. Fielder offers no guarantees or promises of success. Nothing herein should be construed as a recommendation to buy or sell any securities. Fielder or its employees may have an economic interest in securities mentioned herein.