Week of September 15, 2025
The factors of production—land, labor, and capital—drive economic stability. Europe, however, nearly undermined them with poorly designed climate policies. By curtailing traditional energy sources before securing reliable alternatives, it weakened natural resources, raised production costs, and discouraged investment. The result was soaring energy prices and reduced competitiveness, showing how policy missteps can disrupt the balance of land, labor, and capital. Tectonic shifts in politics across Europe suggest that positive changes may be forthcoming. Our Signals remain unchanged.
Bob Bilkie, CFA.
