Chart of the Day: What’s Behind the Coal Rally?

Everyone who pays attention to the energy market knows that oil stocks are down a lot over the last year or so, following oil glut and collapse of the world price of oil (now looking to break back down below $40 a barrel in recent days). And supposedly coal companies—the one Hillary wants to bankrupt on purpose—are a terrible investment because we’re all going green. But lo—what’s this? Coal stocks have doubled since January, as shown in this Daily Shot chart below.

Maybe the selloff of coal was overdone. Maybe the market knows something the greenies don’t, like, oh I don’t know. . . perhaps the fact that the rest of the world (even green Germany!) is still building coal-fired power plants.

Coal Shares copy

Responses