Viewpoints Energy Transition: A Jarring Path to Green Higher energy prices may prompt more investment in energy transition technologies, but we expect periods of volatility and vulnerability along the path to a greener future.
Over the last year, a sharp rise in energy prices – including natural gas, coal, and oil – has contributed to renewed fears that higher input costs could constrain industrial production, reduce household real incomes, and slow economic activity. Relative to pre-pandemic levels, global crude oil prices are now up roughly 50%. In a historical context, this is not uncommon: Since the 1990s, the year-over-year increase in oil prices has exceeded 50% roughly once every three years. In the U.S., while fears that higher energy prices will act as a regressive tax on consumers are warranted, the overall burden from higher oil prices is still considerably below past peaks. To Read the Full Article Log In Or Register
Sustainable Investing Report Find new sustainable fixed income strategies with PIMCO’s range of investment funds: Climate Bond Fund, ESG Income Fund, ESG Total Return Fund, ESG ETFs.
Featured Solutions Why Now Is a Good Time to Invest in Commodities Commodities stand to benefit from underinvestment and the clean energy transition.
Viewpoints The Strategic Case for Commodities With their ability to act as an inflation hedge, diversifier and return enhancer, commodities should be considered an important portfolio allocation over the long term.