Analysts often talk about how tough it would be for large, institutional investors to divest their holdings in fossil fuels. But if the divestment movement hits critical mass, the “last one out loses,” argues AltEnergyStocks editor and private money manager Tom Konrad. Coal stocks are already in freefall, and “it does not take a multi-million dollar salary to know that waiting until your stocks have fallen by half before you sell is a suboptimal investment strategy,” Konrad writes. And he adds that “the long-term fundamentals of oil and gas are not favourable.” Industry costs are rising as producers shift towards unconventional sources, natural gas faces price competition from wind and solar, better storage and transmission technologies are allowing variable sources to supply a larger share of electricity demand, and “the fundamentals of all fossil fuels will be further undermined if the world ever makes a concerted effort to rein in carbon emissions.”
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