Here are my three key investor takeaways from the week.
Walking into an energy crisis
While I will be clear and highlight that I am not an expert, all reports, along with the massive jump in electricity pricing in Australia, suggest the country is walking headlong into an energy crisis of our own making.
Despite having abundant resources and watching Europe suffer under the same struggles, Australians look set to face higher energy costs and more volatile electricity at the same time they face higher interest rates. Poor planning, or short-term planning, is the likely culprit.
Lithium and the power of themes
Thematic stocks have been among the hardest hit in 2022, with technology companies operating in fast-growing sectors dropping like flies.
During the week it was all about lithium, which had seemed to attract diehard supporters that suggested the price of lithium could never fall.
As with all commodity sectors, the market will ebb and flow between surplus and deficit, with higher prices attracting more supply, yet the near vertical trajectory of lithium stocks for the last 12 months was clearly unsustainable.
More casino pain
Finally, Star Entertainment Group Ltd (ASX: SGR) was during the week said to have been ‘unsuitable’ to hold a casino license, just like Crown Resorts Ltd (ASX: CWN) in Melbourne, due to massive deficiencies in their basic processes and governance. This in the era of ‘ESG’ focused investing suggests a lot more needs to be done before providing capital to these types of companies.