1. FOMO on European stocks.

Reasons to prefer European stocks were non-existent just a few months ago.

Now stocks are boosted by geopolitical and monetary tailwinds. There are growing hopes that the conflict in Ukraine can be resolved within months, while German elections are seen pushing the country toward more fiscal stimulus.

“Expectations of a truce in Ukraine have lifted sentiment on Europe,” say Barclays strategists led by Emmanuel Cau. “Tariffs threat is arguably unhelpful for EU equities, but counterbalanced by rising hopes of a ceasefire.”

2. China versus Germany.

From 2006 to 2023, China's nuclear energy production surged by 690%, rising from 55 TWh to 435 TWh.

Meanwhile, Germany's nuclear output plummeted from 167 TWh to zero, making it the only major economy to fully phase out nuclear power.

3. Expensive gas, the sequel?

4. Fortunately, renewables are expected to become cheaper in 2025 and beyond.

BloombergNEF analysis shows new wind and solar farms are already undercutting new coal and gas plants on production cost in almost every market globally.

With wind and solar undercutting coal and gas, the next frontier is making renewables dispatchable at scale.

Battery tech, green hydrogen, and grid flexibility solutions will define how smoothly we transition to a clean energy future.

5. Batteries on the rise.

In 2010 California had 2 residential energy storage systems. Now it has 193,000.

6. Another contrarian trade doing well this year.

Here is the Nasdaq versus the Golden Dragon China ETF.

The Golden Dragon index is composed of securities of U.S. exchange-listed companies that are headquartered or incorporated in the People's Republic of China.

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