Ancient people were experts at tracking the sun's path... They knew how important it was to their survival. And for some civilizations, it was worth killing for.
This 'Ancient Power Source' Is Taking Over
By Marc Chaikin, founder, Chaikin Analytics
Ancient people were experts at tracking the sun's path...
They knew how important it was to their survival. And for some civilizations, it was worth killing for.
Nowadays, we don't stop and think about how important the sun is. We have incredible technologies that make life as we know it possible around the clock.
But for ancient civilizations, that wasn't the case.
Daily activities stopped when the sun went down. People feared that if they didn't appease the sun with rituals and sacrifices... it might not come back in the morning. So they paid a lot of attention to it.
The Aztecs built temples to align with the sun's path. For example, at the main temple at the heart of the Aztec capital, the sun would rise exactly between two shrines at the top of the temple on March 21 – the spring equinox.
Plenty of other ancient buildings line up with the sun in some way. These include Stonehenge in England, the Pyramids of Giza and the Great Sphinx in Egypt, Chichen Itza in Mexico, and Angkor Wat in Cambodia.
We might not appreciate the sun as much as our ancestors. But maybe we should...
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Solar Power Production Is Quietly Surging
Put simply, the sun is humanity's oldest source of energy.
Even better, it's free.
Of course, it costs money to turn the sun's energy into electricity. That's where solar panels come in...
I won't bore you with the details of how solar panels work. Ultimately, every solar panel does the same thing – it converts sunlight into electricity.
The first solar panels made in the 1950s were very inefficient. They converted about 6% of sunlight into electricity.
However, solar efficiency has improved steadily over the years. Today, the best panels convert well over 20% of the sun's rays into usable energy.
Meanwhile, manufacturing costs have fallen sharply. That's critical – because it means solar has caught up to other energy sources in terms of cost per watt (the standard measure for electric power).
In the 1970s, solar costs were more than $100 per watt. By the 1980s, that number fell to around $30 per watt. And today, solar power costs roughly $0.30 per watt.
That's an incredible decline in costs. And a big portion of the price drop happened over the past decade.
Investment bank Lazard publishes an annual review of the energy industry. It tracks the "levelized cost of energy" (or "LCOE") for different energy sources.
The LCOE factors in a project's construction costs plus lifetime maintenance expenses. Then it divides those costs by the plant's expected power production over time. That makes it easier to do an "apples to apples" comparison between different technologies – like solar versus nuclear power.
Lazard's latest report shows a huge drop in solar costs over the past decade-plus. The LCOE of utility-scale solar projects fell by more than 80% since 2009.
In short, big solar projects have gotten much cheaper in recent years.
In fact, Lazard's numbers show that it's cheaper to build a big solar project than it is to build a new natural gas power plant. And solar is even cheaper than coal – based on LCOE.
These falling costs are triggering a surprising boom in solar projects.
Most folks probably haven't noticed. But solar has quietly become a growing part of the world's power supply.
The best source for global energy statistics is the International Energy Agency ("IEA"). In the chart below, you can see electricity production for different energy sources – as well as the IEA's future projections through 2035...
Solar is the dark blue line. Back in 2010, it accounted for almost none of the world's power. But over the past 15 years, it has quickly caught up to nuclear and wind power.
That trend isn't expected to change anytime soon. The IEA forecasts that solar power production will more than double over the next five years – and pass hydropower in the process.
Folks, this is a big deal. And most investors haven't noticed it yet.
And across the globe, solar power is playing a growing role in energy production. So pay attention to this big trend.
Good investing,
Marc Chaikin
Marc Chaikin: 'Ask Me Anything'
In August, Marc Chaikin is doing something he has never done before. After a wild six months for stocks, Marc knows you may have many lingering questions. So, he'll be going on camera – NOT to discuss a specific opportunity, but instead to devote his time to answering YOUR most pressing questions.
But to do that, we need to hear from YOU. If something is keeping you up at night (whether it worries or excites you), we want to hear from you. Marc will answer as many questions as possible during his "Ask Me Anything" event next month.
— According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks are somewhat Bullish. Major indexes are mixed.
* * * *
Sector Tracker
Sector movement over the last 5 days
Energy
+4.07%
Information Technology
+2.04%
Industrials
+1.15%
Health Care
+0.67%
Financial
+0.23%
Real Estate
+0.05%
Consumer Discretionary
-0.38%
Consumer Staples
-0.53%
Utilities
-0.55%
Materials
-1.36%
Communication
-1.61%
* * * *
Industry Focus
NYSE Technology Services
17
14
4
Over the past 6 months, the NYSE Technology subsector (XNTK) has outperformed the S&P 500 by +8.71%. Its Power Bar ratio, which measures future potential, is Very Strong, with more Bullish than Bearish stocks. It is currently ranked #8 of 21 subsectors.
Top Stocks
NVDA
NVIDIA Corporation
AMAT
Applied Materials, I
PDD
PDD Holdings Inc.
* * * *
Top Movers
Gainers
GLW
+11.86%
INCY
+10.29%
CDNS
+9.74%
CBRE
+7.84%
SNPS
+7.29%
Losers
CARR
-10.61%
UPS
-10.57%
BRO
-10.4%
VRSN
-9.32%
PYPL
-8.66%
* * * *
Earnings Report
Earnings Surprises
SPOT Spotify Technology S.A.
Q2
$-0.49
Missed by $-2.86
AMT American Tower Corporation
Q2
$0.78
Missed by $-0.88
SOFI SoFi Technologies, Inc.
Q2
$0.09
Beat by $0.03
HUBB Hubbell Incorporated
Q2
$4.93
Beat by $0.53
CBRE CBRE Group, Inc.
Q2
$1.19
Beat by $0.12
* * * *
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