ELAM: EVs freeze in their tracks

Thousands of Electric Vehicle owners in northern states got a reality check amid the ultra cold weather. A fully charged battery that night had lost one-third by the next morning. Other drivers found batteries losing charge fast amid long lines at the chargers which were still working. This polar event amid climate cooling is on the heels of Hertz dumping 20,000 of its recently purchased EVs due to high maintenance and depreciation.

Memo to John Kerry, Climate Czar

I suspect Team Biden’s embrace of EVs for all will be another drag on his campaign as the realities of EV ownership sink in. Even a small collision can require a new expensive battery. Body parts for Teslas are near non-existent. And many are now noting that the $7,500 rebates were just a ‘tax cut for the rich’ but from Democrats. Will Republicans pick up on that in this campaign year?

Energy prices are unchanged from last week. Crude oil remains in a $70-75 tight range. Despite Secretary Blinken’s claims, the Mid East war is widening with Suez Canal shipping now routed around the Cape of Good Hope in South Africa. That extra distance will raise prices on everything shipped. Team Biden just now put the Houthis back on the terrorist list after removing them his first day in office. No one fears the present day USA.

At least for now, the SPX topped December 28, 2023, and the Dow Industrials on January 12, 2024. Markets were rallying Thursday after falling for several days.

Never mind speculation about a rate cut by the FED. Higher rates and more inflation lie in store.

Here is a suggested strategy that does not require stock market analysis. Interest rates bottomed March 2020 and have risen since. The market is now correcting the fall in bond prices and rise in interest rates. Bonds rallied into the start of this year but have fallen since January 2. A purchase of TBF, a fund that rises as bond prices fall, on January 2 has gained 16.5% in a mere twelve days. Bond prices should be bottoming short term by early next week which suggests a move into the long bond fund TLT. I continue to expect a decline in stock prices for this year. Track the bond trades at themarketperspective.com.