Everyone is a "long-term investor"... until a stock heads south. Then things get tricky. Does that mean you should buy more shares at the lower price? Sell the whole position? Or just sit there and stew on it?

Editor's note: We've seen wild swings in the market recently. And in today's environment, piling into seemingly "safe" stocks could be riskier than you might expect... To that point, today we're sharing an updated version of a classic essay from Joe Austin on the subject. Longtime readers might recognize this essay. It first appeared in the October 4, 2024 edition of the Chaikin PowerFeed. But Joe's message is just as important today as ever... Why You Can't Just Blindly 'Buy and Hold' Joe Austin, senior analyst, Chaikin Analytics Everyone is a "long-term investor"... until a stock heads south. Then things get tricky. Does that mean you should buy more shares at the lower price? Sell the whole position? Or just sit there and stew on it? When faced with a drawdown in a stock they own, investors are more likely to sell their winners and buy more of their losers. Psychologists call this the "disposition effect." When we have a gain, we get greedy. And we want to lock it in. But when we have a loss, we become hopeful. We're inclined to double down. Famed investor Peter Lynch likened this to bad gardening. In his famous book, One Up on Wall Street, he said "selling your winners and holding your losers is like cutting the flowers and watering the weeds." But when a stock goes down, we have to make decisions in a vacuum. No company is going to hold your hand... or give you a heads-up to sell. And in that void, emotions take over. So how can we make rational decisions? We have to listen to the market. And luckily, the Power Gauge is here to help... Recommended Links: Until Midnight TONIGHT: Access Marc Chaikin's New AI-Powered 'Time Machine' It's an extraordinary platform that uses AI to go "back in time" on the biggest winners in stock market history to unlock massive potential gains in today's market. When back tested against the Magnificent Seven, you could have seen a 995% gain on a stock that's better than Alphabet, a 1,406% gain on a stock that's better than Amazon, and a 3,804% gain on a stock that's better than Nvidia, all in just the past two years. Until midnight tonight, click here to be among the first to access it. Final Phase of AI Boom to Be Triggered on July 10? AI stocks like Palantir Technologies, Nvidia, and Microsoft have already made investors rich. But the next wave of AI gains will not come from AI stocks. Instead, it will come from a completely different corner of the market... one that BlackRock predicts will trigger a $23 trillion supercycle. Veteran investors Joel Litman and Landon Swan are joining forces to reveal exactly which stocks they believe are sitting at the center of it – before three rare catalysts send them soaring on July 10. Click here to save your free seat for their briefing this Thursday, July 2. For decades, "buy and hold" was gospel in investing. Big names like Jack Bogle, Warren Buffett, and even Benjamin Graham all lived by it. And it worked. Companies that did well one year tended to do well the next. And even if you were wrong, the market bailed you out. A strong market tended to lift weaker stocks. But blindly following the "buy and hold" mantra can be dangerous. A great example of this within the S&P 500 Index is food giant Kraft Heinz (KHC)... Back in 2015, Kraft and Heinz merged to form one of the largest food companies in the world. Warren Buffett loves it. Berkshire Hathaway (BRK-B) still holds a roughly 27% stake in the company. Kraft Heinz sells lots of brands we all know. For example, aside from its well-known namesake ones, it also owns brands like Maxwell House coffee, Oscar Mayer hot dogs, and Capri Sun juice. Kraft Heinz is a household name. It makes products everyone recognizes. So you would think the business would be stable. But that's not the case. Since the merger, the company has had huge problems. First, it had too much debt. Then came healthy eating. Processed cheese and ketchup weren't part of that trend. Now, many supermarkets are increasingly focused on private-label products. The stores own and sell these goods themselves. Private labels are cheaper. And in today's cost-conscious world, consumers are going cheap. When it comes to the stock, a look at the Power Gauge shows how the company's struggles have played out in recent years... In short, things haven't looked so great over the past five years. As you can see, the stock has mostly languished in "neutral" or "bearish" territory in the Power Gauge. Right now, it has a "neutral-" rating.  As a reminder, this rating happens when a "bearish" or worse stock trades above its long-term trend line. Meanwhile, Kraft Heinz's relative strength versus the S&P 500 has been weak overall. KHC shares have collapsed by about 40% over the past five years. And the broad market is up a whopping 73% over that same time frame. That's massive underperformance. So, there's not much winning here for Kraft Heinz. But the company is far from alone when it comes to weak stocks in the S&P 500... Based on the State Street SPDR S&P 500 Fund (SPY), the Power Gauge is "neutral" on the broad market right now. To be clear, our system does give 116 holdings in SPY a "bullish" or better rating. But amid all those holdings with great ratings, the Power Gauge also sees 76 "bearish" or worse stocks. Put simply, it's not enough to dump money into a big-name company that seems "good" on the surface... and then hope for the best. Today's market demands a more active approach to find the traps. "Buy and hold" just isn't working like it used to. Good investing, Joe Austin   Editor's note: With some stocks skyrocketing and others plunging, it's hard to know where to put your money to work... As regular readers know, that's where the Power Gauge comes in. And now, we're delivering a transformative innovation for our one-of-a-kind system... It's the first-ever AI-powered solution from our firm. And it's designed to help you find stocks with massive profit potential in a way that wasn't even possible before now. Put simply, we've used AI to build our very own version of a stock market time machine. Joe and our founder, Marc Chaikin, recently went on camera to share the full story – and how you can use it to find the next generation of potential 10x stocks. Get the details here before this presentation goes offline at midnight tonight. Due to a technical error, this morning's Chaikin PowerFeed issue does not include the usual data from the Power Gauge below. We apologize for the inconvenience and are working to resolve the issue for the next edition of the PowerFeed. You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, click here. You're receiving this e-mail at reunisoft.cryptonews@blogger.com. For questions about your account or to speak with customer service, call +1 (877) 697-6783 (U.S.), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. Please note: The law prohibits us from giving personalized financial advice. © 2026 Chaikin Analytics, LLC. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Chaikin Analytics, LLC. 201 King Of Prussia Rd., Suite 650, Radnor, PA 19087. www.chaikinanalytics.com. Any brokers mentioned constitute a partial list of available brokers and is for your information only. Chaikin Analytics, LLC, does not recommend or endorse any brokers, dealers, or investment advisors. Chaikin Analytics forbids its writers from having a financial interest in any security they recommend to our subscribers. All employees of Chaikin Analytics, LLC (and affiliated companies) must wait 24 hours after an investment recommendation is published online – or 72 hours after a direct mail publication is sent – before acting on that recommendation. This work is based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors, and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.

Brussels Edition: Economic fortunes

ECB policymakers are meeting for their annual forum in Portugal ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

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Welcome to the Brussels Edition. I’m Suzanne Lynch, Bloomberg’s Brussels bureau chief, bringing you the latest from the EU each weekday. Make sure you’re signed up. ECB officials are striking a relatively upbeat tone on the outlook for Europe’s economy at their annual retreat in Sintra, Portugal this week. Kicking off proceedings last night, the central bank’s president, Christine Lagarde, said the region is becoming less vulnerable to external shocks thanks to an improved financial framework and progress on the climate transition, noting it had withstood higher US tariffs and the impact of the Middle East war. The real question occupying investors is what’s next for interest rates. The bank lifted the cost of borrowing by a quarter-point this month, the first hike since 2023, and markets are betting they’ll do so again. In a series of interviews this morning, ECB governing-council members gave some insight into their thinking. Pierre Wunsch, Belgium’s central-bank chief, said the case for the ECB to raise rates for a second time isn’t as clear as it was. The truce between the US and Iran means that the origin of the price shock had “more or less” disappeared. But Dutch council member Olaf Sleijpen said the full extent of the inflation shock from the Iran war isn’t yet fully apparent. “A decline in the oil prices now, of course, is from an inflation point of view definitely good news,” he told Bloomberg TV. “But it remains to be seen what is still in the pipeline.” Data published today could alleviate some of the pressure on the bank to act again. Germany’s annual inflation rate eased more than expected in June, after a report earlier in the day showed a surprisingly sharp decline in French inflation. Italian prices also cooled unexpectedly. The shift is introducing an element of doubt into bets on further rate increases, with traders no longer fully pricing another hike this year. Investor attention will shift tomorrow to Kevin Warsh, who will make his first international appearance since President Donald Trump appointed him last month as chair of the US Federal Reserve. Warsh is due to speak on a panel with Lagarde and the British and Canadian central-bank governors. Aside from hints on monetary policy, the event will be scrutinized for any contrast in chemistry with his predecessor, Jerome Powell. Last year in Sintra, Powell was heaped with praise for standing firm against Trump’s attacks. The Latest The EU and China set an October deadline to make progress on trade disagreements, following a meeting between Trade Commissioner Maros Sefcovic and his Chinese counterpart yesterday. The EU will reserve half of its steel quotas for countries with free-trade deals under new measures meant to protect local industry from mostly Chinese imports. Germany and the Netherlands established a military command center in the Baltic region to deter Russia as part of a broader effort to take on responsibility within NATO ahead of a summit in Ankara next week. Germany’s central bank, the Bundesbank, is vying to oversee the country’s planned state-backed pension fund, set to be one of Europe’s largest pools of long-term capital worth hundreds of billions of euros. Seen and Heard on Bloomberg Speaking in Sintra, ECB Chief Economist Philip Lane told Bloomberg TV that knock-on effects from higher energy prices will take a while to materialize and policymakers won’t lock themselves into a path for interest rates in the meantime. Officials are committed to “not boxing ourselves in” on the trajectory for monetary policy, he added. Chart of the Day Nuclear-reactor company Newcleo is one of nine European startups with a combined value of at least $12.3 billion that have announced plans this year to merge with US-listed SPACs (Special Purpose Acquisition Companies). The Paris-based firm has raised $780 million in private capital since it was founded in 2021 but has yet to turn a profit. So, when Nasdaq-listed acquisition vehicle NewHold Investment Corp. III knocked on the door, it saw an opportunity to list overseas and secure up to $429 million of cash to spend. It illustrates how European firms in critical sectors like nuclear energy and quantum computing are flocking to the US, despite efforts by European authorities and bourses to make the region’s markets more appealing and accessible. Coming up German Foreign Minister Boris Pistorius in Estonia today German Chancellor Friedrich Merz hosts a meeting of top coalition officials tomorrow to discuss its latest reform package European Commission President Ursula von der Leyen in Azerbaijan tomorrow Ireland assumes six-month presidency of the Council of the EU tomorrow Final Thought Thousands of websites are knocked offline every weekend as collateral damage in the Spanish football league’s aggressive campaign against sports piracy – a problem estimated to cost broadcasters and rightsholders globally more than than $28 billion each year. LaLiga, home to Barcelona and Real Madrid, is stepping up efforts to combat websites that illegally stream matches, seeking to protect the revenue it earns from selling broadcast rights. But the technique it’s using, IP blocking, is a blunt tool, and ends up taking out all sorts of other websites, from mom-and-pop shops and travel sites to government agencies and nonprofits. A LaLiga match between Real Madrid and Espanyol at the Santiago Bernabeu stadium in Madrid on April 30, 2022. Photographer: Gabriel Bouys/AFP/Getty Images Like the Brussels Edition? Don’t keep it to yourself. Colleagues and friends can sign up here. How are we doing? We want to hear what you think about this newsletter. Let our Brussels bureau chief know. We’re improving your newsletter experience and we’d love your feedback. If something looks off, help us fine-tune your experience by reporting it here. Follow Us You received this message because you are subscribed to Bloomberg’s Brussels Edition newsletter. If a friend forwarded you this message, sign up here to get it in your inbox. Unsubscribe Bloomberg.com Contact Us Bloomberg L.P. 731 Lexington Avenue New York, NY 10022 |

Spain’s solar is too cheap for investors

The country has too much power on sunny days ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

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Is there such a thing as too much solar? Today’s newsletter looks at Spain’s oversupplied solar sector, which has delivered cheap power for millions of Spaniards — but has investors looking for a quick exit. Meanwhile, the UK could miss its clean energy target by five years because of capacity constraints in its grid. Subscribe to Bloomberg.com for unlimited access to all our coverage. Investors want out of Spanish solar By Thomas Gualtieri, Eamon Farhat, and Clara Hernanz Lizarraga Over the past 15 years, Spain has been one of Europe’s fastest-growing renewable-energy markets, with venture capitalists, utilities and banks plowing more than $80 billion into the sector. But that surge in investment has created a glut of electricity so large that solar parks are plummeting in value and investors are looking for an exit. So much solar capacity was added last year that it flooded the grid, pushing prices deep below zero during peak times as producers cut rates to off-load excess power. Only six months into the year, the country has already surpassed its annual record for the number of hours when producers must pay users to take their electricity. The problem is happening across Europe, but it’s most dramatic in Spain, where solar last year overtook wind as the largest source of electricity. “The economics have deteriorated so sharply that investors are trying to exit at steep discounts,” says Daniel Pérez, head of L’Energètica, a utility in the Catalonia region. A worker installs a solar panel near Zaragoza, Spain. Photographer: Angel Garcia/Bloomberg At least four Spanish projects or companies have been offered for sale, according to people familiar with the matter. Arena Green Power SL and Matrix Renewables have been shopped around, the people say, asking not to be named discussing private processes. Both companies declined to comment. Privately held RIC Sun España SL was on the market, but the company says that’s been shelved as it works to add batteries to its parks. The gap between the expectations of sellers and buyers has grown so big that transactions have slowed significantly, according to Alvarez & Marsal Valuation Services in Madrid. Iberdrola SA, Europe’s biggest green-power producer, has delayed some asset sales after getting what it considers lowball offers from potential buyers, two of the people say. Iberdrola declined to comment. Short sellers are circling. BlackRock Advisors LLC and at least four other big firms have opened up sizable short positions (a bet that a stock will fall) in Solaria Energia y Medio Ambiente SA. The company’s solar output jumped by almost half in the first three months of this year, though the average price for its solar power fell one-fifth over the same period. Solaria declined to comment, but it has said that to diversify its business, it has raised €300 million ($342 million) to buy batteries to effectively stockpile excess electricity during peak hours. And it’s considering building data centers to move beyond simple generation — and provide a ready buyer for its power. Solar panels in Barcelona. Photographer: Angel Garcia/Bloomberg The problem has worsened since a blackout in April 2025 that plunged most of Spain and Portugal into darkness. Since then, Spain’s national grid operator, Red Eléctrica, has been more aggressive in ordering farms offline, because solar complicates network management. Power systems require stability in both frequency (the grid’s rhythm) and voltage (the electrical pressure that keeps power flowing reliably). Traditionally, large spinning turbines helped maintain this balance, but solar is more prone to sudden shifts in supply and demand and requires more active control. For many Spanish consumers, the glut is a blessing, because the price they pay for power is linked to what producers get on the wholesale market. This year their rates have been among the lowest in Europe — about half of what Germans pay. But the surge in output has stirred a debate over how grids can adapt to the dramatic rise in renewable generation capacity. Although some investors are shying away from the sector, it could become a “sweet spot” for funds that take stakes in troubled companies and try to turn them around, says Luis del Barrio, who leads the energy consulting practice in Madrid at Arthur D. Little Inc. “You’re looking at between €6 and €10 billion in equity” to buy struggling assets, he says. “Plus about €10 billion of investment in batteries to save the sector.” Read more Beyond solar 55,000 MW Brookfield’s development pipeline of storage capacity globally, from current 3,100 MW. The firm expects batteries to play a central role as power becomes extremely cheap in the middle hours of the day Storage solution Companies “want the ability to hedge themselves when prices are high during the evening peaks, and storage coupled to renewables provide that.” Arnaud Jouvin Head of Brookfield’s global energy storage strategy Grid woes weigh on UK climate goals By Eamon Farhat The UK will probably miss its clean electricity target by five years because of capacity constraints on its grid and could struggle to deliver on promises to cut household energy bills, according to consultant LCP Delta. About 83% of all power should come from clean sources by 2030, short of the government’s goal of 95%, with that milestone now unlikely to be hit until 2035, LCP Delta said in a report. A huge amount of renewable energy — enough to power millions of homes — is set to be lost because it can’t flow to where it’s needed, prompting gas-fired plants to be turned up to fill the gap. The warning underscores one of the biggest challenges facing Britain’s energy transition. While renewables output is rapidly expanding, there hasn’t been enough investment in the network to handle the extra flows and insufficient battery capacity to store excess power. That’s limiting how much electricity can actually be used and making it harder to curb fossil-fuel use and lower consumers’ bills. Get full coverage This week’s Zero listen Zero Solar, Batteries Are Thriving in Trump's America The common narrative is that the US renewables industry is struggling. But that’s not the case for the whole sector. This week on Zero, Akshat Rathi talks with Kevin Smith, chief executive officer of Cypress Creek Energy, which recently secured $3.5 billion in financing to build one of the biggest solar and battery projects in the US. Even as the current American administration dismantles clean-energy policies, Smith sees a bright future for solar and batteries. Listen now, and subscribe on Apple, Spotify or YouTube to get new episodes of Zero every Thursday. More from Green World Bank scraps climate financing targets The World Bank decided to remove quantitative targets for incorporating climate objectives into its financing, months after criticism from the US — its biggest shareholder — that it should get back to focusing on economic development. Read more Photo finish Farmers at a flooded paddy field in India in 2024. Photographer: Indranil Aditya/Bloomberg India’s monsoon season had an unusually weak start as the El Niño weather phenomenon curbed rains. The country had recorded a 40% rainfall deficit by mid-June. But ample rain forecast for early July could help India’s farmers as the busiest sowing period for key crops approaches. If the forecast holds, the rainfall could help rice, soybean, cotton and pulse farmers boost sowing, reducing risks to crop output, food inflation and rural incomes. More from Bloomberg Business of Food for a weekly look at how the world feeds itself in a changing economy and climate, from farming to supply chains to consumer trends Energy Daily for a daily guide to the energy and commodities markets that power the global economy Tech In Depth for analysis and scoops about the business of technology Explore all Bloomberg newsletters. We’re improving your newsletter experience and we’d love your feedback. If something looks off, help us fine-tune your experience by reporting it here. Follow Us You received this message because you are subscribed to Bloomberg’s Green Daily newsletter. If a friend forwarded you this message, sign up here to get it in your inbox. Unsubscribe Bloomberg.com Contact Us Bloomberg L.P. 731 Lexington Avenue New York, NY 10022 |