The First Rule of Wing Walking

Wing walking is the art of moving along the wings of an airplane, most commonly a biplane, during flight.  It originated as a daredevil stunt in the aerial barnstorming shows of the 1920s.

Clearly, the first rule of wing walking is, or should be, don’t let go of what you have, before you have a firm grip on something else.

Some governments and agencies, particularly in the U.S. and Germany, seem to be unfamiliar with that concept, as they rush to shutter fossil fuel and nuclear electrical generating capacity, before identifying affordable and reliable alternative sources of electricity.

Investors should be aware that electricity is an important component of virtually all forms of economic activity.  Although the energy component varies, cost is always a factor and is part of the pricing model, while reliability is crucial.  Moreover, energy affordability and reliability are factors involved in making investment decisions and may have an adverse impact on the administration’s onshoring strategy.

Consumers may see higher prices, brownouts and restrictions on use.

Hope is not a strategy.

All comments and suggestions are welcome.

Walter J. Kirchberger, CFA