2025
NEE (NextEra Energy), DUK (Duke Energy), EXC (Exelon), SO (Southern Company), WEC (WEC Energy Group), XEL (Xcel Energy), EVRG (Evergy), D (Dominion Energy), POAHY (Porsche Automobil Holding SE), BHP (BHP Group), RIO (Rio Tinto), S32 (South32), VALE (Vale SA), CSIQ (Canadian Solar), MP (MP Materials), ALB (Albemarle), UMI (Umicore), LAZR (Luminar Technologies), VOW (Volkswagen), QCOM(Qualcomm), AES (AES Corp), AMD (Advanced Micro Devices), MU (Micron Technology), TCNNF (Trulieve), NVAX (Novavax), MRNA (Moderna), SQM (Sociedad Química y Minera), URG (Ur-Energy), EU (Encore Energy Corp Reg), CWEN (Clearway Energy), BKY (Berkeley Energia Ltd) may be exposed to high interest rates, strong dollar, inflation, tariffs, bond yields, fiscal policy, trade war, and consumer spending (based on industry trends and company characteristics).
1. MU (Micron Technology)
High interest rates: Moderate exposure (capital-intensive industry, debt financing costs).
Strong dollar: High exposure (revenue from international markets).
Inflation: Moderate exposure (input costs for semiconductors).
Tariffs: Moderate exposure (global supply chain, trade with China).
Trade war: High exposure (semiconductors are a key battleground in U.S.-China trade tensions).
Consumer spending: Moderate exposure (demand for electronics and memory chips).
2. VALE (Vale SA)
Strong dollar: High exposure (commodities priced in USD, but costs in local currency).
Inflation: Moderate exposure (input costs for mining operations).
Tariffs: Low exposure (iron ore and metals less affected by tariffs).
Trade war: Moderate exposure (demand from China for iron ore).
Consumer spending: Low exposure (more tied to industrial demand).
3. AMD (Advanced Micro Devices)
High interest rates: Moderate exposure (capital-intensive, debt financing).
Strong dollar: High exposure (international revenue).
Inflation: Moderate exposure (input costs for semiconductors).
Tariffs: Moderate exposure (global supply chain).
Trade war: High exposure (semiconductors are a key trade war issue).
Consumer spending: Moderate exposure (demand for PCs, gaming, and data centers).
4. AES (AES Corp)
High interest rates: High exposure (utility sector, high debt levels).
Inflation: Moderate exposure (regulated utilities can pass costs to consumers).
Fiscal policy: Moderate exposure (government incentives for renewable energy).
Consumer spending: Low exposure (utilities are essential services).
5. QCOM (Qualcomm)
High interest rates: Moderate exposure (capital-intensive, debt financing).
Strong dollar: High exposure (international revenue).
Inflation: Moderate exposure (input costs for semiconductors).
Tariffs: Moderate exposure (global supply chain).
Trade war: High exposure (key player in U.S.-China tech rivalry).
Consumer spending: Moderate exposure (demand for smartphones and IoT devices).
6. LAZR (Luminar Technologies)
High interest rates: High exposure (growth stock, reliant on financing).
Inflation: Moderate exposure (input costs for manufacturing).
Consumer spending: Moderate exposure (demand for autonomous vehicles).
7. SQM (Sociedad Química y Minera)
Strong dollar: High exposure (commodities priced in USD).
Inflation: Moderate exposure (input costs for lithium mining).
Tariffs: Low exposure (lithium less affected by tariffs).
Trade war: Moderate exposure (demand from EV manufacturers).
Consumer spending: Low exposure (more tied to industrial demand).
8. POAHY (Porsche Automobil Holding SE)
High interest rates: Moderate exposure (luxury car sales sensitive to financing costs).
Strong dollar: Moderate exposure (international sales).
Inflation: Moderate exposure (input costs for manufacturing).
Consumer spending: High exposure (luxury goods tied to consumer confidence).
9. NVAX (Novavax)
High interest rates: High exposure (biotech reliant on financing).
Inflation: Moderate exposure (R&D and manufacturing costs).
Consumer spending: Low exposure (more tied to healthcare demand).
10. RIO (Rio Tinto)
Strong dollar: High exposure (commodities priced in USD).
Inflation: Moderate exposure (input costs for mining).
Tariffs: Low exposure (metals less affected by tariffs).
Trade war: Moderate exposure (demand from China for iron ore and copper).
Consumer spending: Low exposure (more tied to industrial demand).
11. CSIQ (Canadian Solar)
High interest rates: Moderate exposure (reliant on project financing).
Strong dollar: Moderate exposure (international sales).
Inflation: Moderate exposure (input costs for solar panels).
Fiscal policy: High exposure (government incentives for renewable energy).
Consumer spending: Low exposure (more tied to industrial and utility demand).
12. MRNA (Moderna)
High interest rates: High exposure (biotech reliant on financing).
Inflation: Moderate exposure (R&D and manufacturing costs).
Consumer spending: Low exposure (more tied to healthcare demand).
13. ALB (Albemarle)
Strong dollar: High exposure (commodities priced in USD).
Inflation: Moderate exposure (input costs for lithium production).
Trade war: Moderate exposure (demand from EV manufacturers).
Consumer spending: Low exposure (more tied to industrial demand).
14. URG (Ur-Energy)
Strong dollar: High exposure (uranium priced in USD).
Inflation: Moderate exposure (mining costs).
Fiscal policy: High exposure (government support for nuclear energy).
15. EXC (Exelon)
High interest rates: High exposure (utility sector, high debt levels).
Inflation: Moderate exposure (regulated utilities can pass costs to consumers).
Fiscal policy: Moderate exposure (government incentives for clean energy).
Consumer spending: Low exposure (utilities are essential services).
16. NEE (NextEra Energy)
High interest rates: High exposure (utility sector, high debt levels).
Inflation: Moderate exposure (regulated utilities can pass costs to consumers).
Fiscal policy: High exposure (government incentives for renewable energy).
Consumer spending: Low exposure (utilities are essential services).
17. DUK (Duke Energy)
High interest rates: High exposure (utility sector, high debt levels).
Inflation: Moderate exposure (regulated utilities can pass costs to consumers).
Consumer spending: Low exposure (utilities are essential services).
18. SO (Southern Company)
High interest rates: High exposure (utility sector, high debt levels).
Inflation: Moderate exposure (regulated utilities can pass costs to consumers).
Consumer spending: Low exposure (utilities are essential services).
19. XEL (Xcel Energy)
High interest rates: High exposure (utility sector, high debt levels).
Inflation: Moderate exposure (regulated utilities can pass costs to consumers).
Consumer spending: Low exposure (utilities are essential services).
20. WEC (WEC Energy Group)
High interest rates: High exposure (utility sector, high debt levels).
Inflation: Moderate exposure (regulated utilities can pass costs to consumers).
Consumer spending: Low exposure (utilities are essential services).
21. EVRG (Evergy)
High interest rates: High exposure (utility sector, high debt levels).
Inflation: Moderate exposure (regulated utilities can pass costs to consumers).
Consumer spending: Low exposure (utilities are essential services).
22. D (Dominion Energy)
High interest rates: High exposure (utility sector, high debt levels).
Inflation: Moderate exposure (regulated utilities can pass costs to consumers).
Consumer spending: Low exposure (utilities are essential services).
23. EU (Encore Energy Corp Reg)
Strong dollar: High exposure (uranium priced in USD).
Inflation: Moderate exposure (mining costs).
Fiscal policy: High exposure (government support for nuclear energy).
24. CWEN (Clearway Energy)
High interest rates: High exposure (reliant on project financing).
Inflation: Moderate exposure (input costs for energy production).
Fiscal policy: High exposure (government incentives for renewable energy).
Consumer spending: Low exposure (more tied to industrial and utility demand).
25. VOW (Volkswagen)
High interest rates: Moderate exposure (auto sales sensitive to financing costs).
Strong dollar: Moderate exposure (international sales).
Inflation: Moderate exposure (input costs for manufacturing).
Trade war: Moderate exposure (global supply chain).
Consumer spending: High exposure (auto sales tied to consumer confidence).
26. BHP (BHP Group)
Strong dollar: High exposure (commodities priced in USD).
Inflation: Moderate exposure (input costs for mining).
Tariffs: Low exposure (metals less affected by tariffs).
Trade war: Moderate exposure (demand from China for iron ore and copper).
Consumer spending: Low exposure (more tied to industrial demand).
27. TCNNF (Trulieve)
High interest rates: High exposure (cannabis industry reliant on financing).
Inflation: Moderate exposure (input costs for cultivation).
Consumer spending: Moderate exposure (cannabis sales tied to discretionary spending).
28. S32 (South32)
Strong dollar: High exposure (commodities priced in USD).
Inflation: Moderate exposure (input costs for mining).
Tariffs: Low exposure (metals less affected by tariffs).
Trade war: Moderate exposure (demand from China for metals).
Consumer spending: Low exposure (more tied to industrial demand).
29. BKY (Berkeley Energia Ltd)
Strong dollar: High exposure (uranium priced in USD).
Inflation: Moderate exposure (mining costs).
Fiscal policy: High exposure (government support for nuclear energy).
30. UMI (Umicore)
Strong dollar: Moderate exposure (international sales).
Inflation: Moderate exposure (input costs for materials).
Trade war: Moderate exposure (global supply chain).
Consumer spending: Low exposure (more tied to industrial demand).
31. MP (MP Materials)
Strong dollar: High exposure (rare earth materials priced in USD).
Inflation: Moderate exposure (mining costs).
Tariffs: Moderate exposure (U.S.-China trade tensions over rare earths).
Trade war: High exposure (key player in U.S.-China tech rivalry).
Consumer spending: Low exposure (more tied to industrial demand).
High
*High Interest Rates (utilities & capital-intensive sectors)
High
SQM (Sociedad Química y Minera)
*Strong Dollar (export-oriented companies, foreign revenue exposure)
Moderate
Moderate to High
High
*High Inflation (materials, energy, consumer goods, and utilities)
Exposure to High Interest Rates, Inflation, Strong Dollar
High Interest Rates (Financials, utilities, real estate, capital-intensive sectors)
POAHY (Porsche Automobil Holding SE)
Strong brand and affluent customer base provide a buffer against significant declines in demand due to higher rates. Steel production is highly sensitive to inflation, especially for raw materials and energy.
High Interest Rates: Moderate. As a holding company with exposure to the auto industry, Porsche may face higher financing costs, though high-end autos may be less sensitive.
Strong Dollar: Moderate. Porsche sells luxury vehicles internationally, and a strong dollar could impact its sales outside the U.S.
Inflation: Moderate. Rising raw material and labor costs in automotive manufacturing could lead to price increases, but luxury demand may be more resilient.
Overall Exposure: Low to Moderate
VOW (Volkswagen)
As an automaker, it has significant capital needs, and rising interest rates could affect car sales (which tend to be financed) and production costs. Volkswagen is a European-based carmaker, and a strong dollar could hurt its exports. Car manufacturers like Volkswagen face inflationary pressures on labor, materials, and energy.
High Interest Rates: Moderate. Volkswagen is capital-intensive, but the auto industry can often weather rising rates depending on demand.
Strong Dollar: Moderate to High. As a global automaker, Volkswagen’s international sales may suffer if the dollar strengthens.
Inflation: High. Rising labor and material costs significantly impact automotive manufacturers like Volkswagen.
Overall Exposure: Moderate
MU (Micron Technology)
Capital-intensive and may face slower consumer demand but is supported by long-term tech growth trends.
High Interest Rates: Moderate. Micron, a semiconductor company, faces high capital expenditure needs for R&D and manufacturing, making it sensitive to interest rates. However, demand for semiconductors is often cyclical.
Strong Dollar: High. As a global exporter, a stronger dollar makes Micron’s products more expensive abroad, potentially reducing international sales.
Inflation: Moderate. Micron could face cost pressure from inflation in raw materials and labor, although pricing power in semiconductors may offset some of that.
Overall Exposure: Moderate to High
AMD (Advanced Micro Devices)
Reliance on capital for growth, but its position in high-demand tech sectors helps mitigate the impact.
High Interest Rates: Moderate. Similar to Micron, AMD could face higher borrowing costs. However, strong demand for semiconductors mitigates this.
Strong Dollar: High. A stronger dollar makes AMD's products more expensive internationally.
Inflation: Moderate. Inflation could raise costs in materials and manufacturing, but AMD has strong pricing power in the CPU and GPU markets.
Overall Exposure: Moderate to High
AES (AES Corp)
Capital-intensive but benefit from stable demand for essential services.
High Interest Rates: High. AES, a utility company, typically carries significant debt. Rising interest rates increase the cost of capital.
Strong Dollar: Moderate. AES operates in global markets, but its impact is less pronounced compared to other companies in sectors like tech or mining.
Inflation: High. Energy prices and the costs of maintaining infrastructure are sensitive to inflation.
Overall Exposure: High
CSIQ (Canadian Solar)
Solar companies can be hit by rising financing costs for large projects, which are capital intensive. Solar energy equipment is often exported, so a strong dollar could hurt its competitiveness globally. Inflation can increase the costs of solar panel production and raw materials.
High Interest Rates: Moderate. Rising interest rates can increase financing costs for solar projects, but the long-term growth of renewable energy may counterbalance some of this pressure.
Strong Dollar: Moderate. A strong dollar may make Canadian Solar’s products more expensive overseas, which could affect sales.
Inflation: High. Inflation can increase the cost of solar panels and the materials required for renewable energy infrastructure.
Overall Exposure: Moderate to High
LAZR (Luminar Technologies)
As a tech company involved in autonomous driving, its growth is capital intensive and could be affected by high borrowing costs. Exports of autonomous technology could be negatively impacted by a strong dollar. Inflation may affect costs for materials and technology, which could impact margins.
High Interest Rates: Moderate. As a high-growth tech company focused on lidar for autonomous vehicles, Luminar may struggle with rising interest rates as funding costs rise.
Strong Dollar: Moderate. A strong dollar could reduce demand for Luminar’s products in international markets.
Inflation: Moderate to High. Inflation could raise the cost of raw materials and labor, especially for high-tech components.
Overall Exposure: Moderate to High
MP (MP Materials)
As a rare earth materials supplier, it might see some pressure from rising interest rates. MP Materials is primarily U.S.-based, but its global customers could be impacted by a stronger dollar. Inflation could affect the cost of rare earth material production.
High Interest Rates: Moderate. As a rare earths miner, MP may see higher costs of capital for expansion projects.
Strong Dollar: Moderate. The dollar’s strength could influence MP’s revenue from international sales of rare earth elements.
Inflation: High. Inflation could raise costs related to mining, labor, and energy for MP Materials.
Overall Exposure: Moderate to High
QCOM (Qualcomm)
High interest rates could increase borrowing costs, but its business model is less dependent on financing. Qualcomm has a global presence, and a strong dollar could make its products more expensive in foreign markets, reducing demand. Rising costs for components and raw materials could hurt margins, but Qualcomm can likely pass costs on.
High Interest Rates: Moderate. As a technology company with global operations, Qualcomm may face higher capital costs but could benefit from strong demand for mobile and wireless technology.
Strong Dollar: High. Qualcomm generates a significant portion of its revenues internationally, so a strong dollar can reduce foreign earnings.
Inflation: Moderate. Inflation could push up costs in R&D, manufacturing, and logistics, but Qualcomm can pass on some costs due to its competitive position in the wireless market.
Overall Exposure: Moderate to High
ALB (Albemarle)
Similar to SQM, Albemarle is exposed to interest rates as a major player in the lithium market, but demand may remain strong. Albemarle's lithium exports could be hurt by a stronger dollar, affecting its international competitiveness. Inflation affects costs for lithium extraction and production.
High Interest Rates: Moderate. Albemarle is involved in lithium production, and higher interest rates can affect the cost of financing expansion.
Strong Dollar: High. A stronger dollar can hurt Albemarle’s international revenue.
Inflation: High. Albemarle is a chemical producer, so inflationary pressures on raw materials and energy are significant.
Overall Exposure: High
VALE (Vale SA)
The mining sector is highly exposed due to the need for significant capital investment and sensitivity to global economic conditions.
High Interest Rates: Moderate. As a mining company, higher interest rates can impact project financing and capital costs.
Strong Dollar: Moderate to High. Vale is a global miner, and the strong dollar can depress commodity prices, as they are typically traded in dollars. However, Vale benefits from higher demand for iron ore.
Inflation: High. Commodities like iron ore are sensitive to inflationary pressures, and Vale faces cost increases in extraction and logistics.
Overall Exposure: High
BHP (BHP Group)
Mining companies like BHP are somewhat insulated, but rising rates could impact their financing costs for expansion projects. BHP's global operations mean that a strong dollar could make its products more expensive and reduce international demand. Inflation could raise costs for mining operations and materials.
High Interest Rates: Moderate. BHP, a global mining giant, may face higher financing costs, but commodity demand could buffer this.
Strong Dollar: Moderate. Stronger dollar can lower the global pricing of commodities like iron ore and copper.
Inflation: High. Inflation can lead to increased operational and logistical costs for BHP’s mining operations.
Overall Exposure: High
RIO (Rio Tinto)
As a mining company, its costs could increase if borrowing costs rise, though commodities may still be in demand. As a global mining company, a strong dollar could reduce demand for its commodities, especially in non-dollar-denominated regions. Mining operations are sensitive to inflationary pressures on energy, labor, and materials.
High Interest Rates: Moderate. Mining projects are capital-intensive, and higher interest rates could increase financing costs for Rio Tinto.
Strong Dollar: Moderate. As a global miner, a strong dollar can depress commodity prices, particularly in non-dollar economies.
Inflation: High. Mining companies are highly sensitive to inflation in terms of labor and energy costs.
Overall Exposure: Moderate to High
NVAX (Novavax)
Pharmaceuticals are less sensitive to interest rates, but R&D and capital investments may feel some pressure. As a biotech company, Moderna might be less impacted by the strong dollar, but international revenues could be affected. Inflation can affect manufacturing costs, but demand for vaccines may be less price-sensitive.
High Interest Rates: High. As a biotechnology company, Novavax could face higher borrowing costs for R&D and clinical trials.
Strong Dollar: Moderate. A strong dollar could make Novavax’s products more expensive internationally, though it depends on where the company sells vaccines.
Inflation: High. Rising costs of materials, labor, and logistics for vaccine production could affect profitability.
Overall Exposure: High
EU (Encore Energy)
Capital-intensive mining sector and reliance on debt or equity to fund exploration and development. Rising costs in exploration, production, and labor can hurt margins.
High Interest Rates: Moderate. As a uranium exploration and production company, higher rates could increase financing costs.
Strong Dollar: Moderate. A strong dollar can affect uranium pricing and revenues from international sales.
Inflation: High. Rising costs in exploration, production, and labor can hurt margins.
Overall Exposure: Moderate to High
URG (Ur-Energy)
Uranium mining can be capital intensive and sensitive to interest rate changes. As a domestic uranium miner, the strong dollar might not have much direct impact. Uranium mining is sensitive to inflation on labor and materials costs.
High Interest Rates: Moderate. As a uranium miner, rising rates could increase financing costs for new projects.
Strong Dollar: Moderate. The strength of the dollar can affect the international pricing of uranium.
Inflation: High. Inflation could impact costs related to mining operations and logistics.
Overall Exposure: Moderate to High
EXC (Exelon)
Utilities like Exelon are very sensitive to interest rates, as they rely heavily on debt financing. As a U.S.-focused utility, Exelon would be less exposed to currency fluctuations. Utilities like Exelon might face some inflationary pressures, but they can pass costs on to consumers.
High Interest Rates: High. As a utility company with significant debt, Exelon is sensitive to higher borrowing costs.
Strong Dollar: Moderate. Exelon is more affected by domestic operations, but a stronger dollar could still have some international impacts.
Inflation: High. Rising costs in energy production, labor, and materials will have a direct impact on Exelon’s operations.
Overall Exposure: High
DUK (Duke Energy)
Like other utilities, Duke Energy would feel the impact of higher financing costs. Duke Energy operates mainly in the U.S., so it’s less exposed to the strong dollar. Same as other utilities, more insulated from inflation but still impacted by rising operational costs.
High Interest Rates: High. As a utility company, Duke Energy’s heavy debt load makes it sensitive to rising interest rates.
Strong Dollar: Moderate. Duke’s impact from a stronger dollar is less significant compared to global exporters.
Inflation: High. Utility companies like Duke Energy are highly exposed to inflation in terms of energy costs and maintenance.
Overall Exposure: High
SO (Southern Company)
Utilities are especially sensitive to interest rate hikes, which would increase the cost of debt and impact profitability. Like other utilities, Southern Company is U.S.-centric. Same as other utilities, more insulated from inflation but still impacted by rising operational costs.
High Interest Rates: High. Similar to other utility companies, Southern Company has high capital needs and is sensitive to interest rate hikes.
Strong Dollar: Moderate. Southern operates mostly in the U.S., so a strong dollar has less impact.
Inflation: High. Rising fuel and labor costs significantly affect Southern’s operations.
Overall Exposure: High
XEL (Xcel Energy)
Utilities such as Xcel Energy typically have significant debt, making them vulnerable to rising interest rates. Xcel Energy is mostly a domestic player. Same as other utilities, more insulated from inflation but still impacted by rising operational costs.
High Interest Rates: High. Xcel is a utility with large capital expenditures and a high debt load, so it is sensitive to interest rate hikes.
Strong Dollar: Moderate. Less exposure to a strong dollar compared to other sectors.
Inflation: High. Rising costs in energy production and maintenance impact Xcel’s profitability.
Overall Exposure: High
WEC (WEC Energy Group)
As with other utilities, high interest rates would raise capital costs. WEC Energy Group operates primarily in the U.S. Same as other utilities, more insulated from inflation but still impacted by rising operational costs.
High Interest Rates: High. Rising interest rates hurt utilities with heavy capital needs like WEC Energy.
Strong Dollar: Moderate. Less exposure to a strong dollar than international exporters.
Inflation: High. Rising costs of energy and labor affect WEC’s margins.
Overall Exposure: High
EVRG (Evergy)
Utilities, especially those like Evergy, which are capital-intensive, are sensitive to high interest rates. Evergy’s domestic operations reduce its exposure. Same as other utilities, more insulated from inflation but still impacted by rising operational costs.
High Interest Rates: High. As a utility company, Evergy is also impacted by rising interest rates.
Strong Dollar: Moderate. Impact is moderate as Evergy’s operations are primarily domestic.
Inflation: High. Inflationary pressures on energy costs and maintenance affect Evergy.
Overall Exposure: High
NEE (NextEra Energy)
An utility company with significant debt exposure, making it sensitive to rising interest rates. NextEra Energy has limited exposure to a strong dollar due to its domestic focus. NextEra, as a utility, is more insulated from inflation but still impacted by rising operational costs.
High Interest Rates: High. NextEra, as a utility company focused on renewable energy, faces substantial capital expenditures, and higher rates could increase financing costs.
Strong Dollar: Moderate. NextEra’s international operations may see some impact from a stronger dollar.
Inflation: High. Rising costs in energy production and maintenance of infrastructure could pressure margins.
Overall Exposure: High
D (Dominion Energy)
A utility with significant debt, Dominion Energy faces exposure to higher rates. Dominion Energy is a domestic utility. Same as other utilities, more insulated from inflation but still impacted by rising operational costs.
High Interest Rates: High. Rising rates negatively affect Dominion, which carries significant debt for infrastructure.
Strong Dollar: Moderate. Impact from a strong dollar is moderate as Dominion's operations are mainly in the U.S.
Inflation: High. Energy and labor inflation put pressure on margins for Dominion.
Overall Exposure: High
SQM (Sociedad Química y Minera)
It's a mining company, and while it is capital intensive, the demand for lithium might shield it from the worst effects. As a Chilean-based lithium producer, a strong dollar can make its products more expensive for foreign buyers, reducing demand. Inflation could raise the cost of mining and transportation for lithium, affecting margins.
High Interest Rates: Moderate. SQM, a major lithium and chemicals producer, could face higher capital costs for mining and expansion projects.
Strong Dollar: High. The strong dollar depresses commodity prices in other currencies, which could hurt SQM’s international sales.
Inflation: High. Rising input costs, including labor and energy, can hurt margins, especially for a commodity producer like SQM.
Overall Exposure: High
CWEN (Clearway Energy)
Like other utilities, Clearway Energy would be sensitive to rising rates, especially as it finances large infrastructure projects. Clearway Energy has some international exposure but is mainly U.S.-focused. Energy infrastructure companies are exposed to inflation but can adjust pricing.
High Interest Rates: High. Clearway’s capital-intensive renewable energy projects are sensitive to rising borrowing costs.
Strong Dollar: Moderate. A stronger dollar has a moderate impact on Clearway’s international revenues.
Inflation: High. Inflation could affect the costs of energy production and project financing.
Overall Exposure: High
UMI (Umicore)
The long-term demand for green technology and materials could help offset the impact of higher borrowing costs. Inflation could affect the cost of production.
High Interest Rates: Moderate. Umicore is a materials technology company with capital expenditures for R&D, and could face higher borrowing costs.
Strong Dollar: High. A stronger dollar can hurt Umicore’s revenues from international markets.
Inflation: High. Rising input and raw material costs are a concern for a company in the materials sector.
Overall Exposure: High
TCNNF (Trulieve)
The cannabis industry often relies on external funding, so high interest rates could hurt its profitability. Cannabis companies like Trulieve operate mostly in the U.S. market. Inflation may affect production costs in the cannabis sector.
High Interest Rates: Moderate. As a cannabis company, rising interest rates could make capital more expensive.
Strong Dollar: Moderate. A stronger dollar can affect international sales of cannabis products.
Inflation: High. Inflation in agricultural inputs, labor, and energy impacts Trulieve’s margins.
Overall Exposure: High
S32 (South32)
Like other mining companies, high rates could impact capital spending. South32 is an Australian-based mining company, so a strong dollar could hurt international sales. South32's mining operations are sensitive to inflation in energy and labor costs.
High Interest Rates: Moderate. As a global miner, South32 may face higher capital and operational costs due to rising interest rates.
Strong Dollar: Moderate. The dollar's strength could suppress commodity prices, impacting South32’s profitability.
Inflation: High. Mining operations are highly exposed to inflation, especially with rising costs for energy and materials.
Overall Exposure: High
BKY (Berkeley Energia Ltd)
As a development-stage mining company, it is particularly vulnerable to rising borrowing costs. Rising costs in energy, labor, and materials have a strong effect on operations.
High Interest Rates: High. Mining projects are capital-intensive, and high rates could make financing more expensive for Berkeley.
Strong Dollar: Moderate. A strong dollar can reduce international commodity prices, hurting Berkeley’s margins.
Inflation: High. Rising costs in energy, labor, and materials have a strong effect on Berkeley’s operations.
Overall Exposure: High
MRNA (Moderna)
The biotech sector can sometimes be insulated from interest rate increases, although R&D funding might get costlier. Strong dollar might slightly impact its sales overseas, but global vaccine demand could buffer it. Inflationary pressures on production and raw materials may raise costs.
High Interest Rates: Moderate to High. As a biotech company, Moderna requires significant R&D spending and could face higher financing costs.
Strong Dollar: Moderate. International sales of Moderna’s vaccines may be impacted by a strong dollar.
Inflation: High. Rising costs in manufacturing and logistics, as well as labor costs, could hurt Moderna’s margins.
Overall Exposure: High
./ second opinion
Low Exposure: NVAX (Novavax), MRNA (Moderna), PAH3 (Porsche), VOW (Volkswagen), TCNNF (Trulieve). Moderate Exposure: EU (Encore), VALE (Vale), SQM (Sociedad Química y Minera), S32 (South32), UMI (Umicore), RIO (Rio Tinto), ALB (Albemarle), MP (MP Materials), BHP (BHP Group), BKY (Berkeley Energia), AMD (Advanced Micro Devices), D (Dominion Energy). High Exposure: NEE (NextEra Energy), SO (Southern Company), WEC (WEC Energy Group), XEL (Xcel Energy), EVRG (Evergy), DUK (Duke Energy), EXC (Exelon), URG (Ur-Energy), CWEN (Clearway Energy), AES (AES Corp.), QCOM (Qualcomm), MU (Micron Technology), LAZR (Luminar Technologies), CSIQ (Canadian Solar)
Low Exposure to High Interest Rates
Less sensitive to interest rate changes due to limited debt, capital-light operations, or business models that are less reliant on heavy financing.
NVAX (Novavax) – Low Exposure
Novavax is a biotechnology company, and while they may rely on funding for R&D, their capital expenditures and debt loads are typically lower than those of industrial or infrastructure companies. The company's exposure to interest rates is limited, although it may still face indirect impacts from market sentiment.
MRNA (Moderna) – Low Exposure
Moderna, like other biotech companies, generally has a relatively low level of debt. As a result, the impact of rising interest rates on financing costs is lower compared to industries that require significant capital expenditure.
PAH3 (Porsche) – Low Exposure
Porsche, as a leading car manufacturer, has diversified its revenue sources and has strong cash flow. While financing costs can affect vehicle production and innovation, the company is relatively insulated from direct impacts of high interest rates due to its stable financial position.
VOW (Volkswagen) – Low Exposure
Volkswagen, despite its size and capital needs, has a diversified business model and strong cash flow. While rising interest rates could impact its financing costs, the company is relatively insulated due to its large scale and financial stability.
TCNNF (Trulieve) – Low Exposure
Trulieve is a cannabis company that, while capital-intensive, generally operates with lower debt than many other industries. Rising interest rates may increase its cost of financing, but it is not as exposed as highly leveraged sectors like utilities or mining.
Moderate Exposure to High Interest Rates
Somewhat affected by rising interest rates, but they have more resilient or diversified business models, lower debt loads, or less capital-intensive operations.
EU (Encore) – Moderate Exposure
Encore is a small-cap mining company. While interest rates affect capital-intensive industries like mining, Encore's relatively smaller size and focus on exploration may provide some buffer from high debt burdens.
VALE (VALE) – Moderate Exposure
VALE, a large mining company, operates in the natural resources sector, which is less capital intensive compared to energy and infrastructure projects. However, large mining projects do require significant financing, and higher rates can affect margins and investments.
SQM (Sociedad Química y Minera) – Moderate Exposure
SQM is a major player in lithium and other minerals, which are in high demand. While interest rates do affect their financing, the company benefits from the strong growth in electric vehicle production and battery storage, which can offset some of the negative impacts of higher rates.
S32 (South32) – Moderate Exposure
South32 is a mining company with a diversified portfolio of assets. While sensitive to interest rates, its relatively large and diversified operations mitigate some of the risks associated with rising borrowing costs.
UMI (Umicore) – Moderate Exposure
Umicore is a leader in materials technology, focusing on batteries and recycling. Although interest rates can affect their cost of capital, the growing demand for electric vehicle batteries and clean energy helps balance the pressure from higher financing costs.
RIO (Rio Tinto) – Moderate Exposure
Rio Tinto is a major mining company with substantial cash flow and a diversified portfolio. While higher rates do impact their financing, their large-scale operations and stable revenue generation provide a cushion against interest rate rises.
ALB (Albemarle) – Moderate Exposure
Albemarle is a leading player in lithium production. While its debt exposure could be higher due to the capital-intensive nature of the industry, the strong demand for lithium should help mitigate the impact of rising rates.
MP (MP Materials) – Moderate Exposure
MP Materials, involved in rare earth mining, is capital-intensive, but its debt load is less significant than many energy and utility companies. However, its future growth may be hampered if high interest rates make it harder to finance new mining projects.
BHP (BHP Group) – Moderate Exposure
BHP, one of the largest mining companies, is relatively resilient to interest rate hikes due to its strong cash flow and diversified operations. However, higher interest rates can still impact capital spending, especially for expansion in more capital-intensive projects.
BKY (Berkeley Energia) – Moderate Exposure
Berkeley Energia is a mining company that is capital-intensive, but its debt load is lower compared to utilities. Rising interest rates could affect their ability to raise funds for expansion, but the impact may not be as significant as for highly leveraged companies.
AMD (Advanced Micro Devices) – Moderate Exposure
AMD is a semiconductor company, and while it has capital expenditures, the company is less reliant on debt than many other capital-intensive industries like utilities or energy. Still, rising rates could slow down R&D investments and expansions in the tech sector.
D (Dominion Energy) – Moderate Exposure
Dominion Energy, while a utility, has a diversified energy portfolio and is less leveraged compared to other utilities. However, it still has a significant amount of debt, which makes it moderately sensitive to rising interest rates.
High Exposure to High Interest Rates
These companies are likely to face significant pressure from rising interest rates due to heavy capital spending, debt, or sensitivity to financing costs.
URG (Ur-Energy) – High Exposure
Small cap mining companies like Ur-Energy are highly sensitive to rising interest rates, as they tend to carry significant debt, especially in capital-intensive industries like uranium mining. Rising rates increase borrowing costs, which can delay expansion or limit operations.
CWEN (Clearway Energy) – High Exposure
Clearway is a renewable energy company, often with significant debt on its balance sheet due to long-term infrastructure projects (e.g., wind and solar farms). High interest rates increase the cost of financing, which can slow down project development.
AES (AES) – High Exposure
AES is a utility company, which tends to have high capital expenditures and long-term debt. With interest rates rising, their cost of capital increases, making financing for infrastructure projects more expensive and potentially impacting profitability.
QCOM (Qualcomm) – High Exposure
Qualcomm is a technology company with a relatively high debt load for its sector, as it invests in R&D and expansion. Rising rates could increase borrowing costs, limiting their ability to scale and invest aggressively in growth initiatives.
MU (Micron) – High Exposure
As a semiconductor company, Micron has large capital expenditures related to building and expanding manufacturing plants. Interest rates have a strong impact on their cost of capital and could lead to delays or a scaling back of investment plans.
LAZR (Luminar Technologies) – High Exposure
Luminar is a tech company involved in autonomous vehicle sensors. As a high-growth, capital-intensive company, its reliance on external financing and the ability to secure funding at favorable rates makes it highly sensitive to interest rate increases.
CSIQ (Canadian Solar) – High Exposure
Canadian Solar operates in the solar energy sector, which is capital-intensive. High interest rates make it more expensive to finance new projects and could slow down expansion plans.
NEE (NextEra Energy) – High Exposure
NextEra Energy is a major player in renewable energy with large capital expenditures for wind and solar energy projects. It typically relies on debt to finance these projects, so rising interest rates increase the cost of capital, which can negatively affect profitability and growth.
SO (Southern Company) – High Exposure
Southern Company is a utility that also invests heavily in infrastructure and long-term energy projects. It carries substantial debt, which makes it particularly sensitive to rising interest rates. Higher borrowing costs can delay projects and reduce profitability.
WEC (WEC Energy) – High Exposure
WEC Energy is another utility company that relies on capital-intensive infrastructure projects. Similar to Southern Company, its exposure to rising interest rates is significant because of its debt load and long-term capital projects.
XEL (Xcel Energy) – High Exposure
XCEL Energy operates in the utility sector, with substantial investments in energy infrastructure. As with other utilities, rising interest rates impact financing costs, making future investments more expensive and reducing profit margins.
EVRG (Evergy) – High Exposure
Evergy is a utility that also faces significant capital needs to fund energy infrastructure. Higher rates mean higher borrowing costs, which can slow down expansion or increase costs in the long term.
DUK (Duke Energy) – High Exposure
Duke Energy has significant debt due to its large infrastructure projects and capital expenditures in the energy sector. Rising interest rates would increase its borrowing costs, thus impacting long-term growth and potentially increasing its cost structure.
EXC (Exelon) – High Exposure
Exelon, like other utility companies, requires heavy investment in infrastructure, making it reliant on debt financing. Rising interest rates increase the cost of capital, which can hurt earnings and delay growth projects.
./ second opinion
Low Exposure: TCNNF (Trulieve), NVAX (Novavax), MRNA (Moderna) Moderate Exposure: UMI (Umicore), S32 (South32), MP (MP Materials), BKY (Berkeley Energia), CSIQ (Canadian Solar), VOW (Volkswagen) High Exposure: SQM (Sociedad Química y Minera), RIO (Rio Tinto), ALB (Albemarle), BHP (BHP Group), PAH3 (Porsche), QCOM (Qualcomm), LAZR (Luminar), EXC (Exelon), NEE (NextEra Energy), DUK (Duke Energy), SO (Southern Co), XEL (Xcel Energy), WEC (WEC Energy), EVRG (Evergy)
Low Exposure to a Strong Dollar
Minimal international revenue or are largely insulated from the effects of currency fluctuations.
TCNNF (Trulieve) – Low Exposure
Trulieve operates primarily in the U.S., with limited international exposure. A strong dollar has minimal impact on its revenue and costs since it is largely focused on the domestic market.
NVAX (Novavax) – Low Exposure
Novavax, while a biotech company, operates mostly in the U.S. and has limited international revenue compared to larger pharma companies. A strong dollar is unlikely to have a significant impact on its overall financial performance.
MRNA (Moderna) – Low Exposure
Moderna is heavily U.S.-focused for its revenue, though it has some international sales (e.g., vaccine distribution). However, its overall exposure to the strong dollar is less than global pharma companies with more extensive international sales.
Moderate Exposure to a Strong Dollar
Some international revenue or costs, but their overall exposure to a strong dollar is more limited.
UMI (Umicore) – Moderate Exposure
Umicore is a materials technology company with some international sales, especially in battery and recycling technologies. A strong U.S. dollar could make its products more expensive abroad, reducing demand in some regions.
S32 (South32) – Moderate Exposure
South32 is a global mining company, with some sales in the U.S. but mostly in emerging markets. A strong dollar may affect the company’s revenues, but the global nature of its business and commodity pricing reduces the overall sensitivity to currency swings.
MP (MP Materials) – Moderate Exposure
MP Materials, a rare earth miner, operates in a global market. While it does have exposure to international revenue, the strong demand for rare earth materials helps to offset some of the effects of a stronger dollar. However, fluctuations in currency can still affect profitability.
BKY (Berkeley Energia) – Moderate Exposure
Berkeley Energia operates mainly in Spain, with some exposure to the U.S. dollar. A strong dollar could hurt the value of its revenue when converted to USD, but its relatively small size and market focus limit exposure.
CSIQ (Canadian Solar) – Moderate Exposure
Canadian Solar has a significant international presence, especially in the renewable energy sector. However, it is somewhat insulated from the strong dollar due to the growing demand for solar energy and projects in both developed and emerging markets. The company's foreign revenue does expose it to currency fluctuations, but it is less affected compared to mining companies like Rio Tinto or Albemarle.
VOW (Volkswagen) – Moderate Exposure
Volkswagen is a global automaker with a large share of revenue coming from outside of the U.S. markets. While the strong dollar can hurt foreign earnings when converted back to USD, the company’s substantial presence in Europe and China helps mitigate some of the negative impacts. Additionally, the high volume of its production and sales helps spread the currency risk across various markets.
High Exposure to a Strong Dollar
Substantial international revenue, making them sensitive to currency fluctuations.
PAH3 (Porsche) – High Exposure
Porsche is a global automaker, with a significant portion of its sales coming from international markets. A strong U.S. dollar would reduce the value of foreign revenues when converted to USD and may hurt international sales, especially in emerging markets.
QCOM (Qualcomm) – High Exposure
Qualcomm derives a substantial portion of its revenue from international markets, particularly in Asia. A strong dollar reduces the value of international earnings when they are converted back to USD, and it also makes Qualcomm's products more expensive in foreign markets.
LAZR (Luminar Technologies) – High Exposure
Luminar is a global player in the autonomous vehicle sensor market. A stronger dollar can negatively affect its overseas sales and make its products more expensive in foreign markets, thereby reducing demand.
EXC (Exelon) – High Exposure
Exelon, a utility with some international investments, may experience currency headwinds if it has significant revenue from outside the U.S. Rising dollar strength could hurt the translation of foreign earnings into U.S. dollars.
NEE (NextEra Energy) – High Exposure
NextEra Energy has some exposure to international markets, particularly in renewable energy projects. A strong dollar could hurt its international revenue and projects, especially when converting foreign revenues back to U.S. dollars.
DUK (Duke Energy) – High Exposure
Duke Energy, like other utilities with international operations, could face challenges from a strong dollar. It has some exposure to foreign markets, particularly in Latin America, and a stronger dollar may reduce the value of earnings from those markets.
SO (Southern Company) – High Exposure
Southern Company has international operations, particularly in energy projects. A strong dollar could negatively affect its foreign revenue and the value of international contracts when converted to U.S. dollars.
XEL (Xcel Energy) – High Exposure
Xcel Energy, while primarily U.S.-focused, does have some global operations in renewable energy. A strong dollar could reduce the value of international projects and investments in foreign markets.
WEC (WEC Energy) – High Exposure
WEC has some international presence, particularly in renewable energy, which may expose it to foreign exchange risks. A stronger dollar could affect the translation of earnings from international markets and potentially reduce international project returns.
EVRG (Evergy) – High Exposure
Evergy has some international energy ventures. Like other utilities, a strong dollar can reduce the value of international earnings and hurt the company’s growth if foreign energy investments are impacted by a stronger USD.
SQM (Sociedad Química y Minera) – High Exposure
SQM is a major player in the global mining and lithium production market, with a significant portion of its revenue coming from outside the U.S., particularly in emerging markets. A strong dollar makes its products more expensive for customers in foreign countries and reduces the value of foreign revenues when converted to USD.
RIO (Rio Tinto) – High Exposure
Rio Tinto is a major global mining company, and while it operates in multiple markets (primarily in commodities), it generates substantial revenue from regions outside the U.S., including Australia and Europe. A strong dollar lowers the value of foreign revenue when converted to USD and may negatively affect international pricing.
ALB (Albemarle) – High Exposure
Albemarle is a leader in lithium production, with a significant global presence, especially in China and other international markets. A stronger U.S. dollar would likely reduce the value of international sales and make their products more expensive in foreign markets, potentially lowering demand.
BHP (BHP Group) – High Exposure
BHP, one of the largest mining companies globally, has substantial revenue from international markets. A strong U.S. dollar will reduce the value of its foreign revenues when converted to USD, potentially hurting profitability. BHP’s mining operations in Australia and other regions make it sensitive to fluctuations in exchange rates.
./ second opinion
Low Exposure: NVAX (Novavax), MRNA (Moderna), CSIQ (Canadian Solar) Moderate Exposure: PAH3 (Porsche), VOW (Volkswagen), LAZR (Luminar Technologies), TCNNF (Trulieve) High Exposure: SQM (Sociedad Química y Minera), RIO (Rio Tinto), ALB (Albemarle), EU (Encore Energy), URG (Ur-Energy), BHP (BHP Group), S32 (South32), UMI (Umicore), MP (MP Materials), BKY (Berkeley Energia), QCOM (Qualcomm), EXC (Exelon), NEE (NextEra Energy), DUK (Duke Energy), SO (Southern Company), XEL (Xcel Energy), WEC (WEC Energy Group), EVRG (Evergy), D (Dominion Energy)
Low Exposure to High Inflation
These companies are less affected by inflation due to less sensitivity to raw material costs, strong pricing power, or the nature of their business models.
NVAX (Novavax) – Low Exposure
Novavax, a biotech company, may experience inflationary pressures on raw materials and labor in drug production. However, it has more pricing power compared to industries reliant on raw materials like metals or energy. The demand for vaccines and other healthcare products remains inelastic, giving the company more flexibility to adjust prices in response to inflation.
MRNA (Moderna) – Low Exposure
Moderna, like Novavax, operates in the biotech sector, which is less exposed to inflationary pressures compared to capital-intensive industries like energy and manufacturing. The company can increase the price of vaccines in response to inflationary pressures. However, it may face some cost increases in production and logistics, but its ability to pass on costs is relatively strong due to the ongoing global demand for vaccines.
CSIQ (Canadian Solar) – Low Exposure
Canadian Solar, a renewable energy company, is exposed to inflation in raw materials and labor costs for solar panel production. However, renewable energy markets are growing rapidly, which helps mitigate inflationary impacts. While rising material costs (e.g., silicon) could reduce margins, increasing demand for solar energy provides Canadian Solar with pricing power to offset some of these inflationary pressures.
Moderate Exposure to High Inflation
Some exposure to inflation but can manage cost increases through pricing power, operational efficiency, or less dependency on raw materials and labor costs.
PAH3 (Porsche) – Moderate Exposure
Porsche, as a luxury car manufacturer, faces inflation in raw materials (like metals and electronics), labor, and logistics. However, its pricing power in the luxury market allows it to pass on some of these increased costs to consumers, mitigating the impact of inflation. Additionally, Porsche's cost structure may be more resilient compared to mass-market car manufacturers.
VOW (Volkswagen) – Moderate Exposure
Volkswagen, a large global automaker, also faces inflationary pressures on materials, labor, and supply chains. However, its diverse product lineup and large economies of scale help offset some inflationary pressures. It also has some pricing power, especially in higher-margin segments, but mass production may limit its ability to fully pass on costs.
LAZR (Luminar Technologies) – Moderate Exposure
Luminar Technologies, which specializes in lidar sensors for autonomous vehicles, is somewhat insulated from high inflation because its production costs are lower compared to industries that require raw materials like metals or energy. However, it still faces inflation in labor and some components, though its relatively niche market provides it with pricing flexibility.
TCNNF (Trulieve) – Moderate Exposure
Trulieve, a leader in the U.S. cannabis sector, faces inflationary pressures mainly in cultivation costs (labor, materials, energy) and transportation. However, as cannabis demand remains strong, the company has some ability to pass on inflationary costs to consumers, though regulatory challenges in pricing and taxation may limit this flexibility.
High Exposure to High Inflation
Vulnerable to inflation due to high reliance on raw materials, labor, or energy costs. They may struggle with margin pressures or rising operational costs in a high-inflation environment.
SQM (Sociedad Química y Minera) – High Exposure
SQM, a major player in the mining industry, especially in lithium and other minerals, faces significant inflationary pressures on raw materials and labor. Lithium, a key input for electric vehicle batteries, is seeing rising demand, but inflation in mining-related costs (e.g., labor, energy, chemicals) could lead to higher production costs. Additionally, the company's operations are highly capital-intensive, which makes it vulnerable to rising costs for equipment, labor, and energy.
RIO (Rio Tinto) – High Exposure
Rio Tinto is a global leader in mining, with exposure to inflation due to the costs of raw materials, labor, and energy needed for its mining operations. Inflation in input costs (e.g., metals, fuel, labor) could significantly raise operational costs. Additionally, the mining sector faces logistical challenges (transportation and equipment costs) that are sensitive to inflation, which could squeeze profit margins.
ALB (Albemarle) – High Exposure
Albemarle, a key player in lithium production for electric vehicle batteries, is highly exposed to inflation. The rising demand for lithium and other chemicals used in batteries increases its raw material and operational costs. The company is also affected by inflation in energy and labor costs, which could reduce profitability unless it can pass on these costs through higher prices for its products.
EU (Encore Energy) – High Exposure
Encore Energy is involved in uranium mining, an industry that requires significant energy input for extraction and processing. The rising costs of energy, labor, and materials impact the mining process directly, making this company vulnerable to inflation. Additionally, uranium production is capital-intensive, and inflation can push up the cost of equipment, transportation, and maintenance.
URG (Ur-Energy) – High Exposure
Ur-Energy is another uranium miner, and it faces similar inflationary pressures to Encore Energy. Rising costs for labor, energy, and materials are major concerns for uranium mining companies, especially during periods of high inflation. The capital-intensive nature of the mining industry and long development cycles for new projects make Ur-Energy particularly vulnerable to higher costs.
BHP (BHP Group) – High Exposure
Explanation: BHP, one of the world’s largest mining companies, faces inflationary pressures on raw materials (e.g., metals), energy, and labor. The company is involved in extracting a variety of resources like copper, iron ore, and coal, all of which are sensitive to rising commodity prices. Additionally, inflation in global logistics and equipment costs can significantly impact BHP’s cost structure.
S32 (South32) – High Exposure
South32, a global mining and metals company, is highly exposed to inflation due to its reliance on mining commodities, including aluminum, coal, and manganese. Inflation in energy and raw material costs, as well as labor inflation, can significantly increase production costs. Furthermore, the capital-intensive nature of the mining business leaves the company vulnerable to inflationary pressures on investment and equipment.
UMI (Umicore) – High Exposure
Umicore is a global leader in the recycling of precious metals and production of materials for batteries and catalytic converters. The company faces inflationary pressures on the cost of raw materials, such as precious metals and chemicals, as well as rising labor and energy costs. These materials are highly sensitive to inflation, and any spike in their prices will significantly impact Umicore’s production costs.
MP (MP Materials) – High Exposure
MP Materials is a leading producer of rare earth materials used in technology and defense. The mining and processing of rare earth materials are highly energy-intensive and subject to inflationary pressures. The costs of labor, energy, and equipment are sensitive to inflation, and these costs can rise sharply during periods of high inflation. Additionally, rare earth supply chains are vulnerable to inflation in shipping and logistics.
BKY (Berkeley Energia) – High Exposure
Berkeley Energia is focused on uranium mining, and like other mining companies, it faces inflationary pressures from labor, energy, and materials costs. The mining process is capital-intensive, and inflation in global commodities and equipment prices could significantly impact its profitability. Additionally, rising transportation costs for raw materials could affect overall cost structure.
QCOM (Qualcomm) – High Exposure
Qualcomm, a semiconductor company, is highly sensitive to inflation in raw materials like silicon and metals, as well as labor and logistics costs. While the tech industry can sometimes offset these pressures by increasing prices, the competitive nature of the semiconductor market can make it difficult to pass all costs on to customers, affecting margins.
EXC (Exelon) – High Exposure
Exelon, a utility company, faces rising costs in fuel, labor, and materials, which could negatively affect margins. Utilities like Exelon may have some ability to pass on costs through rate increases, but inflation in construction and maintenance costs for energy infrastructure, as well as potential delays in regulatory approvals, may lead to margin compression.
NEE (NextEra Energy) – High Exposure
NextEra Energy is heavily involved in renewable energy projects, which require significant capital investment in infrastructure and technology. Inflationary pressures on construction materials, labor, and the cost of equipment like wind turbines and solar panels could increase capital and operating expenditures, thereby squeezing margins.
DUK (Duke Energy) – High Exposure
Duke Energy is another utility company with significant exposure to inflation in raw materials, labor, and energy production costs. While it can generally pass some costs to consumers through rate hikes, the delay in regulatory approval and high capital expenditure for infrastructure projects can hurt profitability during inflationary periods.
SO (Southern Company) – High Exposure
Southern Company is a major player in the utility sector, and like other utilities, it is sensitive to inflationary pressures, particularly in fuel costs and infrastructure development. Rising costs for power generation (especially fossil fuels) and for maintaining or upgrading infrastructure could lead to higher operating costs and reduced profitability if rate hikes cannot keep pace with inflation.
XEL (Xcel Energy) – High Exposure
XCEL Energy, similar to other utilities, faces inflationary pressures from rising costs for fuel (e.g., natural gas), labor, and capital expenditures for infrastructure. Inflation may be somewhat mitigated by regulatory mechanisms that allow for rate hikes, but the company’s ability to pass on those costs may be slower than the speed of inflation.
WEC (WEC Energy Group) – High Exposure
WEC Energy Group, another utility, faces inflation in energy production costs, including higher prices for labor, fuel, and materials. Like other utilities, it may pass some of these costs to consumers, but inflation can still exert pressure on profit margins, particularly if energy prices spike and regulatory rate hikes are slow.
EVRG (Evergy) – High Exposure
Evergy is a utility company that may experience margin pressures from inflation in fuel prices, labor, and capital spending for infrastructure. Utilities are sometimes slow to adjust rates, and inflation in operating costs could outpace the company’s ability to pass those costs on to customers, affecting profitability.
D (Dominion Energy) – High Exposure
Dominion Energy is exposed to inflationary pressures in labor, materials, and energy costs, especially for maintaining and expanding its infrastructure. Inflation may increase costs related to the development of new energy projects, and rising costs for fuel can affect margins in the short term, even with some ability to adjust rates.
Exposure to Tariffs, Bond Yields, Fiscal Policy
1. LAZR (Luminar Technologies)
Exposure to Tariffs: Low – Primarily involved in autonomous vehicle technology, with limited exposure to trade tariffs.
Exposure to Bond Yields: Low – Less sensitive to bond yields, as its operations are capital-intensive, but its stock is not yield-driven.
Exposure to Fiscal Policy: Low – Minimal direct impact, though it could benefit from fiscal spending on autonomous vehicle development.
2. SQM (Sociedad Química y Minera)
Exposure to Tariffs: Low – Limited exposure to tariffs, although lithium production could face some risks in the global trade environment.
Exposure to Bond Yields: Low – Bond yields don’t significantly affect SQM’s operations, which are more impacted by commodity prices.
Exposure to Fiscal Policy: Low – While fiscal policies supporting green energy and electric vehicles could influence demand for lithium, the impact is moderate.
3. RIO (Rio Tinto)
Exposure to Tariffs: Moderate – A global mining company with exposure to tariffs, especially between key markets like the US and China.
Exposure to Bond Yields: Low – More influenced by commodity prices and market demand than by changes in bond yields.
Exposure to Fiscal Policy: Low – Minimal direct impact, but global infrastructure spending can indirectly influence demand for its minerals.
4. BHP (BHP Group)
Exposure to Tariffs: Moderate – Faces moderate tariff risk, particularly with its global mining and metals business, subject to US-China trade tensions.
Exposure to Bond Yields: Low – BHP is more affected by global commodity prices than by bond yields.
Exposure to Fiscal Policy: Low – Generally less impacted by fiscal policy, though infrastructure investment can indirectly influence demand for its resources.
5. TCNNF (Trulieve)
Exposure to Tariffs: Low – Limited exposure to tariffs, as it operates primarily in the US cannabis market.
Exposure to Bond Yields: Low – Its financials are driven more by market growth and regulatory developments than by interest rates.
Exposure to Fiscal Policy: Moderate – Trulieve’s business is highly impacted by fiscal policy regarding cannabis legalization, taxation, and regulation.
6. S32 (South32)
Exposure to Tariffs: Low – Limited exposure to trade tariffs, though global trade policy can influence commodity prices.
Exposure to Bond Yields: Low – Less sensitive to bond yields, as the company focuses on natural resources and mining.
Exposure to Fiscal Policy: Low – While some fiscal policies may support infrastructure projects, South32’s business is more driven by global demand for resources.
7. BKY (Berkeley Energia Ltd)
Exposure to Tariffs: Low – Limited exposure to tariffs, mainly due to its uranium production, which is less impacted by trade policies.
Exposure to Bond Yields: Low – The company is more sensitive to uranium prices than to changes in bond yields.
Exposure to Fiscal Policy: Moderate – Government policies regarding nuclear energy and uranium use could have a moderate impact on Berkeley Energia.
8. UMI (Umicore)
Exposure to Tariffs: Low – Focuses on materials technology, with limited exposure to tariffs compared to companies with larger physical production footprints.
Exposure to Bond Yields: Low – Little sensitivity to bond yields, as its business is driven by innovation and specialized materials.
Exposure to Fiscal Policy: Moderate – Fiscal policy can influence demand for clean energy technologies, like electric vehicle batteries, which impacts Umicore.
9. URG (Ur-Energy)
Exposure to Tariffs: Low – Ur-Energy is primarily focused on uranium mining and has limited exposure to global tariffs.
Exposure to Bond Yields: Low – Its financials are driven more by uranium pricing and energy policy than by bond yield fluctuations.
Exposure to Fiscal Policy: Moderate – Policies around nuclear energy, energy independence, and uranium regulation can influence Ur-Energy’s business.
10. CSIQ (Canadian Solar)
Exposure to Tariffs: Moderate – As a solar company, Canadian Solar faces tariff risks on solar panels, especially from China and the US.
Exposure to Bond Yields: Low – The solar industry is not highly sensitive to bond yields, as it is driven by technological innovation and energy demand.
Exposure to Fiscal Policy: Moderate – Canadian Solar benefits from fiscal policies supporting renewable energy, but its exposure is moderate compared to larger energy utilities.
11. MP (MP Materials)
Exposure to Tariffs: Moderate – MP Materials, which produces rare earth materials, faces tariff risks primarily related to trade tensions with China.
Exposure to Bond Yields: Low – Its performance is driven more by the demand for rare earth materials rather than interest rate movements.
Exposure to Fiscal Policy: High – Strongly influenced by fiscal policies related to clean energy, electric vehicles, and national security, which drive demand for rare earths.
12. NVAX (Novavax)
Exposure to Tariffs: Moderate – As a biotechnology company, Novavax may be impacted by tariffs on medical supplies, but this is less significant compared to other industries.
Exposure to Bond Yields: Low – Its performance is more linked to health sector funding and vaccine development than to bond yield changes.
Exposure to Fiscal Policy: High – Heavily influenced by government healthcare spending and vaccine procurement, especially during health crises.
13. MRNA (Moderna)
Exposure to Tariffs: Moderate – Like Novavax, Moderna faces moderate tariff risks on pharmaceutical products but is less exposed to tariffs than other sectors.
Exposure to Bond Yields: Low – The biotechnology sector is less sensitive to bond yields, as it is driven by innovation and healthcare needs.
Exposure to Fiscal Policy: High – Moderna is highly impacted by fiscal policy, particularly government spending on vaccines and public health initiatives.
14. ALB (Albemarle)
Exposure to Tariffs: Moderate – As a global leader in the lithium industry, Albemarle faces some tariff risks, particularly related to US-China trade relations.
Exposure to Bond Yields: Low – Bond yield changes have limited impact on Albemarle’s business, which is driven by commodity prices and demand for lithium.
Exposure to Fiscal Policy: High – Strongly influenced by fiscal policies supporting electric vehicles, green energy, and lithium-ion battery demand.
15. MU (Micron Technology)
Exposure to Tariffs: High – Micron is heavily exposed to tariffs, especially with semiconductor components being a critical point of contention in US-China trade.
Exposure to Bond Yields: Moderate – Its bond yield exposure is moderate, as investors consider interest rates when valuing growth stocks like Micron.
Exposure to Fiscal Policy: Moderate – Fiscal policies aimed at boosting tech infrastructure, like semiconductor incentives, directly affect Micron’s prospects.
16. QCOM (Qualcomm)
Exposure to Tariffs: High – Qualcomm, a major player in mobile chip production, is significantly exposed to tariffs, especially in the US-China trade context.
Exposure to Bond Yields: Moderate – Qualcomm has moderate sensitivity to bond yields, as higher yields can affect investor demand for tech stocks.
Exposure to Fiscal Policy: Moderate – Qualcomm benefits from fiscal policy related to technology development, 5G infrastructure, and government contracts.
17. POAHY (Porsche Automobil Holding SE)
Exposure to Tariffs: High – Porsche, as a global automaker, faces significant exposure to tariffs, particularly between the US, Europe, and China.
Exposure to Bond Yields: Low – Bond yield fluctuations have a minimal effect on Porsche’s business.
Exposure to Fiscal Policy: Moderate – Porsche is influenced by fiscal policies supporting the automotive industry, particularly electric vehicles and green energy.
18. VOW (Volkswagen)
Exposure to Tariffs: High – Volkswagen, as a large global automaker, faces considerable exposure to tariffs, particularly in the US and China.
Exposure to Bond Yields: Low – Minimal direct impact from bond yields, though interest rates could influence consumer demand for new cars.
Exposure to Fiscal Policy: Moderate – Volkswagen benefits from fiscal policies supporting electric vehicle production and infrastructure.
19. NEE (NextEra Energy)
Exposure to Tariffs: Moderate – NextEra’s renewable energy business may face exposure to tariffs, particularly on solar panels and wind turbines.
Exposure to Bond Yields: High – As a utility stock, NextEra is highly sensitive to changes in bond yields due to its dividend appeal.
Exposure to Fiscal Policy: Moderate – Government incentives for clean energy and carbon reduction goals directly impact NextEra’s business.
20. EXC (Exelon)
Exposure to Tariffs: Moderate – Exelon faces some tariff exposure, mainly in terms of energy infrastructure and generation components.
Exposure to Bond Yields: High – Exelon’s dividend-based appeal makes it sensitive to bond yield fluctuations.
Exposure to Fiscal Policy: Moderate – Exelon is impacted by government policies promoting clean energy and carbon emissions regulations.
21. DUK (Duke Energy)
Exposure to Tariffs: Moderate – Duke faces some tariff risks due to its energy generation and infrastructure business.
Exposure to Bond Yields: High – As a utility stock, Duke is highly sensitive to bond yield changes, especially because of its dividend-focused model.
Exposure to Fiscal Policy: Moderate – Fiscal policies around energy infrastructure, climate goals, and renewables influence Duke Energy’s operations.
22. SO (Southern Company)
Exposure to Tariffs: Moderate – Southern Company faces exposure to tariffs, particularly for energy generation and infrastructure equipment.
Exposure to Bond Yields: High – Like other utilities, Southern Company is sensitive to bond yield fluctuations due to its stable dividend payouts.
Exposure to Fiscal Policy: Moderate – Policies related to energy infrastructure and renewables influence Southern Company’s operations.
23. WEC (WEC Energy Group)
Exposure to Tariffs: Moderate – WEC’s exposure to tariffs is moderate, mainly related to energy generation equipment and supplies.
Exposure to Bond Yields: High – As a utility stock, WEC’s dividend-based appeal makes it sensitive to changes in bond yields.
Exposure to Fiscal Policy: Moderate – Fiscal policies that support energy infrastructure and clean energy directly affect WEC’s business.
24. XEL (Xcel Energy)
Exposure to Tariffs: Moderate – Xcel Energy’s exposure to tariffs is moderate, particularly for energy generation components and supplies.
Exposure to Bond Yields: High – As a utility, Xcel is highly sensitive to changes in bond yields, which affect its dividend yields.
Exposure to Fiscal Policy: Moderate – Xcel’s renewable energy initiatives benefit from fiscal policies promoting clean energy and sustainability.
25. EVRG (Evergy)
Exposure to Tariffs: Moderate – Evergy faces moderate tariff exposure related to energy generation and infrastructure.
Exposure to Bond Yields: High – Like other utilities, Evergy’s stock is sensitive to changes in bond yields, as investors compare dividend yields to bond returns.
Exposure to Fiscal Policy: Moderate – Evergy’s business is impacted by fiscal policies related to energy infrastructure and clean energy incentives.
26. CWEN (Clearway Energy)
Exposure to Tariffs: Low – Clearway’s renewable energy business has limited exposure to tariffs.
Exposure to Bond Yields: High – Clearway is sensitive to bond yield changes due to its focus on providing steady dividends.
Exposure to Fiscal Policy: Moderate – Clearway is influenced by fiscal policies promoting clean energy but has moderate exposure compared to other renewable energy companies.
27. EU (Encore Energy Corp Reg)
Exposure to Tariffs: Low – Encore Energy, involved in uranium production, has limited exposure to global trade policies or tariffs.
Exposure to Bond Yields: Low – Less sensitive to bond yield changes as its primary focus is the uranium market.
Exposure to Fiscal Policy: Moderate – Fiscal policies around energy security and nuclear energy can impact Encore Energy’s business.
28. D (Dominion Energy)
Exposure to Tariffs: Moderate – Dominion Energy faces some exposure to tariffs on energy generation equipment and infrastructure.
Exposure to Bond Yields: High – As a utility, Dominion Energy is sensitive to bond yield fluctuations due to its dividend-based financial model.
Exposure to Fiscal Policy: Moderate – Dominion is impacted by fiscal policies related to energy infrastructure, renewable energy incentives, and environmental regulations.
29. S32 (South32)
Exposure to Tariffs: Low – Limited exposure to trade tariffs, though global trade policy can affect commodity prices.
Exposure to Bond Yields: Low – Less impacted by bond yields, as its performance depends more on commodity markets.
Exposure to Fiscal Policy: Low – South32’s exposure to fiscal policy is limited, but global infrastructure spending can indirectly influence demand for its materials.
Exposure to Tariffs
LOW
MP (MP Materials) Primarily a domestic materials play, less affected by tariffs.
NVAX (Novavax) Biotech firm with limited international trade exposure.
ALB (Albemarle) Chemical production, relatively insulated from tariff impacts.
MODERATE
MU (Micron Technology) Semiconductors are highly global and vulnerable to trade restrictions.
CSIQ (Canadian Solar) Solar panels rely on global supply chains, impacted by tariffs.
SQM (Sociedad Química y Minera) Global demand for lithium and chemicals exposed to tariffs.
VOW (Volkswagen) Auto industry is highly exposed to global trade, including tariffs.
BHP (BHP Group) Mining sector is affected by tariffs on metals and global supply chains.
POAHY (Porsche Automobil Holding SE) Affected by tariffs on imported vehicles.
HIGH
VALE (Vale SA) Large global mining company, significantly exposed to tariffs in steel.
RIO (Rio Tinto) Global mining and metals, heavily impacted by international tariffs.
QCOM (Qualcomm) Semiconductors and tech are highly exposed to global trade policy and tariffs.
AMD (Advanced Micro Devices) Strong international presence in semiconductors, highly exposed to tariffs.
Exposure to Fiscal Policy
LOW
MP (MP Materials) Little impact from fiscal policy as it’s more influenced by global demand.
NVAX (Novavax) Less dependent on fiscal policy, more on biotech-specific regulations.
CSIQ (Canadian Solar) Solar industry is mostly market-driven, less dependent on government spending.
VOW (Volkswagen) Auto industry may benefit from fiscal policies but generally less exposed.
ALB (Albemarle) The chemical industry is typically not heavily impacted by fiscal policy changes.
MU (Micron Technology) Micron’s exposure to fiscal policy is limited, mainly influenced by tech demand.
QCOM (Qualcomm) Moderate sensitivity to government policies, mainly in terms of trade and regulation.
MODERATE
POAHY (Porsche Automobil Holding SE) Exposed to fiscal policy changes through potential subsidies or regulation in autos.
BHP (BHP Group) Mining and natural resources can be impacted by fiscal policies on infrastructure and demand.
RIO (Rio Tinto)
Similar to BHP, affected by government spending on infrastructure and regulation.
VALE (Vale SA) Global mining exposure can lead to some fiscal policy impact through demand shifts.
SO (Southern Company) Strong exposure to fiscal policy via energy subsidies, regulation, and infrastructure spending.
DUK (Duke Energy) Similar to Southern, impacted by energy policy and regulation.
EXC (Exelon) Utilities benefit from government policies on energy and infrastructure development.
WEC (WEC Energy Group) Moderate exposure to fiscal policies and government energy programs.
NEE (NextEra Energy) Strong clean energy focus, impacted by fiscal policy shifts, subsidies, and tax incentives.
XEL (Xcel Energy) Sensitive to energy policies and fiscal decisions regarding infrastructure.
EVRG (Evergy) Affected by energy-focused fiscal policies and spending.
D (Dominion Energy) Similar exposure to fiscal policy as other utilities, especially infrastructure funding.
CWEN (Clearway Energy) Exposed to fiscal policies on clean energy and renewable subsidies.
HIGH
URG (Ur-Energy) Strong exposure to fiscal policy as uranium and energy sectors are highly regulated.
S32 (South32) Mining sector highly sensitive to fiscal policy, especially around infrastructure projects.
BKY (Berkeley Energia Ltd) Mining firms often highly impacted by fiscal policy regarding subsidies and taxes.
UMI (Umicore) Materials and energy sectors are deeply influenced by government policy, subsidies, and tax incentives.
AES (AES Corp.) Heavy exposure to fiscal policy, especially in energy infrastructure development.
LAZR (Luminar Technologies) High exposure to fiscal policy through autonomous vehicle incentives and tech regulation.
Exposure to Bond Yields
LOW
TCNNF (Trulieve)
Cannabis sector is less sensitive to interest rate movements.
NVAX (Novavax)
Biotech stocks are typically less influenced by bond yields.
MP (MP Materials)
Materials sector has limited direct exposure to bond yields.
CSIQ (Canadian Solar)
Solar sector has lower sensitivity to interest rates compared to traditional utilities.
VOW (Volkswagen)
Auto industry is not very bond-yield sensitive.
ALB (Albemarle)
Chemicals sector typically less affected by interest rate changes.
MODERATE
MU (Micron Technology)
Semiconductor companies are somewhat sensitive to interest rates, especially for CAPEX.
QCOM (Qualcomm)
Moderate bond yield sensitivity due to capital expenditures and tech investments.
POAHY (Porsche Automobil Holding SE)
Moderate exposure to bond yields due to automotive sector debt.
SO (Southern Company)
Utilities sector has moderate sensitivity due to debt financing and dividend yields.
DUK (Duke Energy)
Similar to SO, utilities are affected by interest rates due to heavy debt reliance.
EXC (Exelon)
Moderate bond yield exposure due to infrastructure and financing needs.
WEC (WEC Energy Group)
Utilities generally sensitive to bond yield changes.
NEE (NextEra Energy)
Strong utility, but more exposed to bond yields due to clean energy infrastructure.
XEL (Xcel Energy)
Utilities sector with moderate sensitivity to bond yield changes.
EVRG (Evergy)
Utilities are moderately exposed to bond yield shifts.
D (Dominion Energy)
Utility company, sensitive to bond yields as it finances large infrastructure projects.
CWEN (Clearway Energy)
Energy and infrastructure plays, impacted by bond yield changes.
HIGH
URG (Ur-Energy)
Highly exposed to bond yields due to financing in a capital-intensive sector.
S32 (South32)
Mining sector is capital-intensive, so bond yield changes affect financing.
BHP (BHP Group)
Significant exposure to bond yields due to large-scale mining and infrastructure needs.
RIO (Rio Tinto)
Large mining operations highly impacted by interest rate changes.
BKY (Berkeley Energia Ltd)
Capital-intensive mining sector, affected by bond yield fluctuations.
UMI (Umicore)
Highly dependent on bond markets for capital, particularly in materials and mining.
AES (AES Corp.)
Utilities heavily affected by bond yields due to large debt and infrastructure costs.
LAZR (Luminar Technologies)
Tech infrastructure requires financing, making it sensitive to bond yield changes.
Exposed to Trade War
LOW
MP (MP Materials) Primarily a raw materials producer, less affected by trade wars.
NVAX (Novavax) Biotech stocks generally have less direct exposure to trade tensions.
LAZR (Luminar Technologies) Technology firm, but focused on specific tech areas that are less affected by trade wars.
URG (Ur-Energy) Uranium mining sector has minimal exposure to trade wars.
ALB (Albemarle) Chemicals industry is not typically directly affected by trade war tariffs.
AES (AES Corp.) Utilities sector has minimal exposure to trade conflicts.
MODERATE
CSIQ (Canadian Solar) Solar energy components are globally traded, making it somewhat sensitive to trade tensions.
EXC (Exelon) Energy sector can be affected by trade wars, though less directly.
VOW (Volkswagen) Auto industry is exposed to trade war impacts, particularly tariffs on vehicles.
POAHY (Porsche Automobil Holding SE) Similar to Volkswagen, exposed to global trade dynamics.
RIO (Rio Tinto) Mining and metals sector is somewhat exposed to trade tariffs and restrictions.
BHP (BHP Group) Mining and global supply chains are vulnerable to trade wars.
HIGH
QCOM (Qualcomm) Highly exposed to trade tensions, especially with China due to semiconductor manufacturing.
VALE (Vale SA) Mining and metals sector, especially iron ore, is vulnerable to trade disputes and tariffs.
AMD (Advanced Micro Devices) Like Qualcomm, deeply exposed to trade wars, especially in semiconductor exports.
MU (Micron Technology) Semiconductors are highly vulnerable to global trade conflicts and tariffs.
Exposed to Consumer Spending
LOW
MP (MP Materials) Materials producer with limited direct ties to consumer spending.
NVAX (Novavax) Biotech company, demand more dependent on healthcare needs rather than consumer behavior.
URG (Ur-Energy) Mining sector has very little exposure to changes in consumer spending.
EXC (Exelon) Utilities, essential services, typically not very sensitive to consumer spending.
NEE (NextEra Energy) Similar to Exelon, energy demand is less dependent on consumer spending levels.
DUK (Duke Energy) Energy consumption is relatively stable, unaffected by consumer spending shifts.
SO (Southern Company) Energy sector with limited reliance on consumer discretionary spending.
XEL (Xcel Energy) Utilities sector not directly impacted by consumer spending patterns.
WEC (WEC Energy Group) Utility company, minimal impact from changes in consumer spending.
EVRG (Evergy) Utilities sector with low consumer spending sensitivity.
CWEN (Clearway Energy) Renewable energy and infrastructure not directly impacted by consumer behavior.
TCNNF (Trulieve) Cannabis sector could be slightly affected by economic conditions, but still more driven by regulatory factors than consumer spending.
MODERATE
S32 (South32) Mining company with some exposure to consumer demand via industrial sectors.
BHP (BHP Group) Mining sector, indirectly influenced by consumer demand in various industries.
RIO (Rio Tinto) Like BHP, exposure is more indirect through industrial demand, not directly consumer-driven.
POAHY (Porsche Automobil Holding SE) Exposed to changes in consumer spending, particularly for high-end cars.
VOW (Volkswagen) Auto industry, moderately affected by consumer purchasing decisions.
ALB (Albemarle) Chemicals and materials company, somewhat tied to consumer goods production and demand.
CSIQ (Canadian Solar) Solar panels and renewable energy are sensitive to both governmental policies and consumer demand.
QCOM (Qualcomm) Consumer electronics are a key market for Qualcomm's products, so spending trends do matter.
LAZR (Luminar Technologies) Automotive and autonomous vehicle industry is tied to consumer demand for cars and technology.
AES (AES Corp.) While utilities are less affected by consumer spending, demand for energy can still be influenced by broader economic conditions.
HIGH
MU (Micron Technology) Consumer electronics (smartphones, PCs, etc.) are key markets for Micron, making it highly exposed to consumer spending trends.
AMD (Advanced Micro Devices) Similar to Micron, highly tied to consumer electronics and gaming markets, which fluctuate with consumer spending.
ALB (Albemarle) Chemicals used in consumer products, like batteries, have high sensitivity to consumer demand and economic cycles.
QCOM (Qualcomm) Highly exposed to consumer spending trends, particularly in smartphones and IoT devices.
./ second opinion
Low Exposure: POAHY (Porsche Automobil Holding SE), MRNA (Moderna), CWEN (Clearway Energy) Moderate Exposure: AES (AES Corp.), LAZR (Luminar Technologies), NVAX (Novavax), EXC (Exelon), NEE (NextEra Energy), DUK (Duke Energy), SO (Southern Company), XEL (Xcel Energy), WEC (WEC Energy Group) High Exposure: MU (Micron Technology), VALE (Vale SA), AMD (Advanced Micro Devices), QCOM (Qualcomm), SQM (Sociedad Química y Minera), VOW (Volkswagen), BHP (BHP Group), MP (MP Materials), UMI (Umicore)
Low Exposure to Tariffs:
These companies operate in industries that are relatively insulated from tariff changes due to the nature of their businesses or local market focus.
POAHY (Porsche Automobil Holding SE) – Low Exposure
Explanation: While Porsche is a global brand, it is well-established in international markets, and its operations may be more resilient to tariffs. It has significant production facilities in multiple countries, including Europe, and may adjust its supply chain to mitigate tariff impacts.
MRNA (Moderna) – Low Exposure
Explanation: Moderna operates in the pharmaceutical and biotech sectors, which are typically less exposed to tariffs. Its business model is largely based on research, development, and distribution of medical products. Tariffs might affect raw material costs but will have limited impact compared to manufacturing or resource-dependent companies.
CWEN (Clearway Energy) – Low Exposure
Explanation: Clearway Energy, a renewable energy company, has relatively low exposure to tariffs since it focuses on energy production and not on manufacturing physical goods. Its exposure to tariffs may only come through imported energy infrastructure, but these effects are limited given the growing focus on domestic projects.
Moderate Exposure to Tariffs:
These companies have some exposure to international trade but either have more diversified markets or can mitigate the impact of tariffs to some extent.
AES (AES Corp.) – Moderate Exposure
Explanation: AES operates in the energy sector and has a global presence, but its operations are more localized (energy generation and distribution) and less impacted by tariffs on raw materials or goods. However, trade tariffs could still affect its supply chains for energy equipment and infrastructure projects, especially if equipment is sourced internationally.
LAZR (Luminar Technologies) – Moderate Exposure
Explanation: Luminar, a company focused on autonomous vehicle lidar sensors, may be affected by tariffs on components (e.g., semiconductors) or export restrictions on its products. However, the company’s relatively specialized market and its focus on the automotive sector somewhat buffer it from broader tariff impacts.
NVAX (Novavax) – Moderate Exposure
Explanation: Novavax, a biotech company, is somewhat insulated from tariffs compared to manufacturing or resource-heavy companies. However, tariffs on pharmaceutical raw materials (especially from China or India) could impact costs for production. Additionally, export tariffs could affect the global distribution of its vaccines, particularly in regions like Europe and Asia.
EXC (Exelon) – Moderate Exposure
Explanation: Exelon, as a utility company, is less exposed to tariffs, though its equipment and infrastructure may involve international sourcing. Still, its core business—electricity generation and distribution—is primarily localized, and tariff-related impacts are less severe compared to sectors reliant on international trade in raw materials or consumer goods.
NEE (NextEra Energy) – Moderate Exposure
Explanation: NextEra Energy’s exposure to tariffs is moderate, as the company’s energy generation relies more on local sources. However, rising tariffs on energy-related equipment and materials used in renewable energy projects (such as solar panels or wind turbines) could raise costs, particularly for their expanding clean energy initiatives.
DUK (Duke Energy) – Moderate Exposure
Explanation: Duke Energy operates primarily in the U.S. and is less exposed to tariffs than companies that rely heavily on global trade. However, the company still imports equipment and materials from overseas, and tariffs on energy-related infrastructure could affect costs.
SO (Southern Company) – Moderate Exposure
Explanation: Southern Company faces moderate exposure to tariffs, mainly related to energy infrastructure materials sourced globally. Its core operations are localized, so the tariff impact is less severe. Still, inflation and tariff-related costs for components (e.g., power plant turbines, energy grid equipment) could increase its operating expenses.
XEL (Xcel Energy) – Moderate Exposure
Explanation: Like other utilities, Xcel Energy is less exposed to tariffs on a day-to-day basis. However, rising costs for raw materials or equipment needed for energy generation (e.g., solar panels or turbines) due to tariffs could negatively impact margins, particularly in renewable energy projects.
WEC (WEC Energy Group) – Moderate Exposure
Explanation: WEC Energy, a utility provider, faces moderate exposure to tariffs, primarily in the form of higher costs for materials used in energy production and infrastructure projects. As a utility, its overall exposure to tariffs is less significant than in other sectors but still relevant for some parts of its operations.
High Exposure to Tariffs:
These companies have significant international trade activity, either through manufacturing, sales, or raw material sourcing, and therefore face a higher risk of being impacted by tariffs.
MU (Micron Technology) – High Exposure
Explanation: Micron, a major semiconductor manufacturer, is highly exposed to tariffs due to its global supply chain and international markets, especially in China. U.S.-China trade tensions and semiconductor tariffs can increase costs for Micron in terms of materials and exports. The company is also impacted by tariffs on the import of raw materials and components needed for manufacturing semiconductors.
VALE (Vale SA) – High Exposure
Explanation: Vale is one of the largest mining companies globally, and its products, such as iron ore and nickel, are heavily traded internationally. Tariffs on mining products, particularly metals, can directly affect its global sales and increase costs for transporting goods. Additionally, trade restrictions and tariffs can disrupt global supply chains and affect pricing and demand for Vale's products.
AMD (Advanced Micro Devices) – High Exposure
Explanation: AMD, like other semiconductor companies, is highly reliant on global supply chains for raw materials and components (e.g., chips and processors). Tariffs on components sourced from Asia, particularly from China, can significantly raise manufacturing costs. Additionally, tariffs on exports can affect sales in international markets, notably in the growing Asia-Pacific region.
QCOM (Qualcomm) – High Exposure
Explanation: Qualcomm, a major player in mobile technology and semiconductor manufacturing, faces significant exposure to tariffs. The company sources parts from Asia (primarily China and Taiwan) and faces tariffs on both imports and exports of semiconductors. Additionally, Qualcomm's dependence on international markets, especially China, for the sale of its products means tariffs on technology exports could significantly hurt the company’s profitability.
SQM (Sociedad Química y Minera) – High Exposure
Explanation: SQM, a leading producer of lithium and other mining products, has international exposure due to global demand for its commodities. Tariffs imposed on raw materials like lithium or other chemicals can impact SQM's global sales and trade dynamics. Additionally, the company faces risks associated with import/export restrictions, particularly in key markets like the U.S. and China.
VOW (Volkswagen) – High Exposure
Explanation: Volkswagen, as a global automaker, has exposure to tariffs related to the export of vehicles and auto parts. Tariffs between the U.S., Europe, and China can disrupt the company's ability to operate efficiently in international markets. With production facilities in multiple countries and significant sales in the U.S. and China, tariff changes can directly impact its profit margins and supply chain.
BHP (BHP Group) – High Exposure
Explanation: BHP, a major mining company, deals with tariffs on metal and mineral exports, especially iron ore, copper, and coal. The company’s global supply chain is vulnerable to trade barriers that can affect both the cost of production and the sale of its raw materials, particularly in Asia and Europe. Tariffs on raw materials can impact the global demand for its products, especially during trade tensions.
UMI (Umicore) – High Exposure
Explanation: Umicore is involved in the recycling of precious metals and production of battery materials. Since it operates in a highly globalized market, tariffs on its key raw materials or exports of finished products (such as battery components) can disrupt supply chains and affect profitability. The company sources materials from multiple countries and has international markets for its products, leaving it exposed to tariff risks.
MP (MP Materials) – High Exposure
Explanation: MP Materials, a leader in rare earth mining, is heavily exposed to tariffs, particularly given the geopolitical nature of rare earths. U.S.-China trade tensions could result in tariffs on rare earth exports or materials sourced from Asia, which could raise costs or limit market access for MP’s products.
./ second opinion
Low Exposure: MU (Micron Technology), VALE (Vale SA), BHP (BHP Group) Moderate Exposure: QCOM (Qualcomm), LAZR (Luminar Technologies), SQM (Sociedad Química y Minera), POAHY (Porsche), MRNA (Moderna), RIO (Rio Tinto), ALB (Albemarle), VOW (Volkswagen), S32 (South32), TCNNF (Trulieve) High Exposure: AES (AES Corp.), EXC (Exelon), NEE (NextEra Energy), DUK (Duke Energy), SO (Southern Company), XEL (Xcel Energy), WEC (WEC Energy Group), EVRG (Evergy), D (Dominion Energy), CWEN (Clearway Energy)
Low Exposure to Bond Yields:
These companies are less likely to be directly affected by bond yields, as they do not have significant debt or capital-intensive business models.
MU (Micron Technology) – Low Exposure
Explanation: Micron is a major semiconductor company, and while it may have some debt, it operates in a high-growth sector where the cost of debt is not as sensitive to bond yields as in capital-intensive industries. Its cash flow generation helps offset any impact from rising borrowing costs.
VALE (Vale SA) – Low Exposure
Explanation: Vale is a large global mining company. While its capital expenditures are significant, it generates strong cash flows from its operations, which reduces its reliance on external financing. As such, its exposure to rising bond yields is low.
BHP (BHP Group) – Low Exposure
Explanation: BHP is a large mining and resources company with substantial cash flow. While it may need financing for major projects, its overall reliance on debt is lower than utilities or other capital-heavy industries, giving it relatively low exposure to bond yields.
Moderate Exposure to Bond Yields:
These companies are less directly affected by bond yields than utilities, but they are still impacted to some degree by changes in financing conditions, especially if they are capital-intensive or have large debt obligations.
QCOM (Qualcomm) – Moderate Exposure
Explanation: Qualcomm is a technology company with a strong balance sheet and a lower reliance on debt than utilities. However, it could still be impacted by rising bond yields if the company needs to issue debt for research, development, or expansion projects. Additionally, changes in bond yields can influence investor sentiment toward growth stocks like Qualcomm.
LAZR (Luminar Technologies) – Moderate Exposure
Explanation: Luminar, a company in the autonomous vehicle technology space, has significant capital needs for R&D and scaling its business. Rising bond yields could make it more expensive for Luminar to access debt capital for expansion, although its reliance on debt is not as significant as more mature industries.
SQM (Sociedad Química y Minera) – Moderate Exposure
Explanation: SQM is a leading lithium producer with exposure to global commodity markets. While it has a significant capital expenditure budget, particularly for mining operations, it doesn't have the same level of exposure to bond yields as utilities. Still, rising yields could impact the company's ability to finance projects at favorable terms.
POAHY (Porsche Automobil Holding SE) – Moderate Exposure
Explanation: Porsche, as an automaker, has a significant global presence and is capital-intensive in terms of manufacturing and R&D. While bond yields may affect borrowing costs for projects, Porsche’s exposure is moderate because of its diversified capital structure, with less reliance on debt financing compared to utilities or infrastructure-focused companies.
MRNA (Moderna) – Moderate Exposure
Explanation: Moderna, as a biotech company, does not rely as heavily on debt financing as utilities, though it may still need to raise capital for expansion or R&D. Changes in bond yields can influence investor sentiment toward growth stocks like Moderna, but the direct impact on borrowing costs is moderate.
RIO (Rio Tinto) – Moderate Exposure
Explanation: Rio Tinto, a major mining company, operates in a capital-intensive industry but is less dependent on debt financing than utilities. Rising bond yields could impact the cost of financing its operations, particularly as large-scale mining projects require significant capital.
ALB (Albemarle) – Moderate Exposure
Explanation: Albemarle, a leading producer of specialty chemicals, has some exposure to bond yields due to its reliance on capital for expansion and R&D. However, its exposure is moderate compared to companies with higher debt levels or those operating in the utility sector.
VOW (Volkswagen) – Moderate Exposure
Explanation: Volkswagen, as a global automaker, has significant debt but is also able to generate substantial revenue and cash flow. It may feel some pressure from rising bond yields, but its exposure is moderate because the company can often access capital through other channels, such as equity or internal cash flow.
S32 (South32) – Moderate Exposure
Explanation: South32, a mining company, is somewhat reliant on debt for major projects, but its exposure to bond yields is moderate because it operates in the commodity space, where cash flow generation can help mitigate higher borrowing costs. However, the company’s ability to refinance or borrow on favorable terms may be affected by rising bond yields.
TCNNF (Trulieve) – Moderate Exposure
Explanation: Trulieve, a cannabis company, is less sensitive to bond yields compared to more capital-intensive sectors like utilities or energy. However, if it seeks to expand through debt issuance or acquisitions, rising bond yields could increase its borrowing costs, leading to more expensive financing.
High Exposure to Bond Yields:
These companies are highly exposed to changes in bond yields, typically due to their reliance on debt or being part of capital-intensive industries.
AES (AES Corp.) – High Exposure
Explanation: AES, a global energy company, has significant capital expenditures related to infrastructure projects in electricity generation and distribution. As a result, the company relies heavily on debt financing. Rising bond yields increase borrowing costs, potentially impacting its ability to fund growth or refinancing debt on favorable terms.
EXC (Exelon) – High Exposure
Explanation: Exelon is a major utility, and utility companies are typically highly leveraged, meaning they rely on debt to finance their operations and capital expenditures. As bond yields rise, Exelon’s cost of capital increases, which can pressure profitability and growth, especially in capital-heavy projects like energy generation and grid modernization.
NEE (NextEra Energy) – High Exposure
Explanation: NextEra, a leading player in the renewable energy space, has significant debt for its infrastructure investments. Rising bond yields increase its borrowing costs, making it more expensive to finance its energy projects. Since NextEra has extensive growth plans, any rise in borrowing costs can hurt its profitability and valuation.
DUK (Duke Energy) – High Exposure
Explanation: Duke Energy, like other utilities, is highly capital-intensive and depends on debt financing for major infrastructure and energy projects. When bond yields rise, the cost of issuing new debt increases, which can erode profitability and lead to higher overall expenses.
SO (Southern Company) – High Exposure
Explanation: Southern Company is another utility company with high capital expenditures related to energy generation and distribution. With significant debt on its balance sheet, rising bond yields increase the company’s interest payments and borrowing costs, putting pressure on margins and potentially impacting growth prospects.
XEL (Xcel Energy) – High Exposure
Explanation: Xcel Energy operates in the utility sector, which is capital-intensive and typically relies on significant debt financing. As bond yields rise, borrowing becomes more expensive for Xcel, and the company may face higher financing costs for its energy projects, impacting profitability and growth.
WEC (WEC Energy Group) – High Exposure
Explanation: WEC, a utility company, is heavily reliant on debt financing for infrastructure development, making it sensitive to changes in bond yields. Rising yields can lead to higher borrowing costs, reducing profitability and potentially delaying growth projects.
EVRG (Evergy) – High Exposure
Explanation: Evergy is a utility company with a similar structure to other major utilities, reliant on debt to finance capital projects. Rising bond yields increase its borrowing costs and may pressure profitability, especially in periods of rapid infrastructure investment or expansion.
D (Dominion Energy) – High Exposure
Explanation: Dominion Energy operates in the utility sector, where debt financing plays a significant role. Higher bond yields increase the company’s borrowing costs, which can reduce profitability and increase the cost of funding capital-intensive infrastructure projects.
CWEN (Clearway Energy) – High Exposure
Explanation: Clearway Energy operates in the renewable energy sector and relies on debt to finance its energy infrastructure investments. Like other utilities, Clearway’s exposure to bond yields is significant, as higher borrowing costs could impact its ability to fund future projects and reduce profitability.
./ second opinion
Low Exposure: POAHY (Porsche), NVAX (Novavax), BHP (BHP Group) Moderate Exposure: MU (Micron Technology), VALE (Vale SA), AMD (Advanced Micro Devices), QCOM (Qualcomm), SQM (Sociedad Química y Minera), MRNA (Moderna), ALB (Albemarle), RIO (Rio Tinto), MP (MP Materials) High Exposure: AES (AES Corp.), EXC (Exelon), NEE (NextEra Energy), DUK (Duke Energy), SO (Southern Company), XEL (Xcel Energy), WEC (WEC Energy Group), EVRG (Evergy), D (Dominion Energy), CWEN (Clearway Energy), VOW (Volkswagen)
Low Exposure to Fiscal Policy:
These companies are less sensitive to changes in fiscal policy as their operations are less influenced by government spending or tax policies.
POAHY (Porsche Automobil Holding SE) – Low Exposure
Explanation: Porsche, while impacted by automotive regulations and incentives for electric vehicles, operates largely in a competitive market driven by consumer demand. It has relatively low exposure to government fiscal policies outside of regulatory frameworks or incentives for green technologies.
NVAX (Novavax) – Low Exposure
Explanation: Novavax, a biotech company, is somewhat affected by government spending on healthcare, but it is more influenced by market demand and competition within the pharmaceutical sector. Its exposure to fiscal policy is limited to specific healthcare initiatives rather than broad fiscal measures.
BHP (BHP Group) – Low Exposure
Explanation: BHP operates in the global commodity market, and while fiscal policies can impact trade or tariffs, its business is largely driven by international demand for natural resources rather than direct fiscal policy.
Moderate Exposure to Fiscal Policy:
These companies are somewhat influenced by fiscal policy, especially when it comes to government incentives or infrastructure investments, but their exposure is less pronounced than the companies in the "high exposure" category.
MU (Micron Technology) – Moderate Exposure
Explanation: Micron, a semiconductor company, is somewhat influenced by fiscal policy, particularly through government incentives for technological development or supply chain support. However, its primary drivers are more related to global supply and demand for chips, so its fiscal policy exposure is moderate.
VALE (Vale SA) – Moderate Exposure
Explanation: Vale, a mining company, is somewhat impacted by fiscal policies, particularly in the areas of infrastructure development or trade policies. Government spending on infrastructure and mining projects can have an indirect impact on Vale’s business, but it is less directly affected than utility companies.
AMD (Advanced Micro Devices) – Moderate Exposure
Explanation: AMD, a semiconductor company, benefits from fiscal policies that support the tech sector, particularly government investments in research and development. However, its exposure is less significant than other sectors such as utilities, and its growth is largely driven by market demand for its products.
QCOM (Qualcomm) – Moderate Exposure
Explanation: Qualcomm is moderately exposed to fiscal policy, especially in terms of government spending on 5G infrastructure, R&D incentives, and telecom regulations. While fiscal policy can indirectly support its growth, the primary driver of its business is the demand for mobile technology.
SQM (Sociedad Química y Minera) – Moderate Exposure
Explanation: SQM, a mining and chemical company, is moderately impacted by fiscal policy, particularly with regard to government spending on infrastructure and mining regulations. However, as a commodity producer, its exposure to fiscal policy is less direct compared to more regulated sectors.
MRNA (Moderna) – Moderate Exposure
Explanation: Moderna is impacted by fiscal policies related to healthcare spending, especially government investments in vaccines and medical infrastructure. While fiscal policy can have a direct impact on its business, it is less exposed compared to industries like utilities or energy.
ALB (Albemarle) – Moderate Exposure
Explanation: Albemarle, a specialty chemicals company, is moderately affected by fiscal policies that support the development of new technologies, particularly those related to electric vehicle batteries and renewable energy. Government incentives for EV production can boost demand for Albemarle’s lithium and other chemicals.
RIO (Rio Tinto) – Moderate Exposure
Explanation: Rio Tinto, a mining company, has moderate exposure to fiscal policy, especially regarding trade tariffs, infrastructure spending, and government regulations. However, its primary drivers are commodity prices and global demand, so fiscal policy has a less direct impact than on utility firms.
MP (MP Materials) – Moderate Exposure
Explanation: MP Materials, a rare earth materials producer, could benefit from fiscal policies that incentivize domestic mining or energy production. However, its exposure is moderate because its business is more reliant on global demand for rare earths and less on domestic fiscal policy.
High Exposure to Fiscal Policy:
These companies are more directly impacted by fiscal policy because they either rely on government spending, regulatory changes, or infrastructure investments.
AES (AES Corp.) – High Exposure
Explanation: AES, a global energy company, is sensitive to fiscal policies, especially in the areas of energy subsidies, infrastructure investments, and renewable energy incentives. Changes in government spending on energy infrastructure, renewable energy tax credits, or subsidies can directly impact AES's ability to finance and deploy energy projects.
EXC (Exelon) – High Exposure
Explanation: Exelon, a utility company, is heavily influenced by fiscal policies, particularly government initiatives related to clean energy, environmental regulations, and public utility commissions' funding decisions. Fiscal incentives, tax credits, or infrastructure spending related to energy projects will have a strong impact on Exelon's growth prospects.
NEE (NextEra Energy) – High Exposure
Explanation: NextEra Energy is a major player in renewable energy, and its growth is closely tied to fiscal policies, particularly government subsidies, tax credits, and funding for clean energy initiatives. A shift in fiscal policies favoring green energy will have a direct impact on NextEra’s business model and growth.
DUK (Duke Energy) – High Exposure
Explanation: Duke Energy operates in the utility sector, and like other utility companies, it is highly sensitive to fiscal policies, including changes in government subsidies, infrastructure spending, and environmental regulation. Government spending on infrastructure projects or incentives for renewable energy can directly affect its operations.
SO (Southern Company) – High Exposure
Explanation: Southern Company, another utility company, is subject to changes in fiscal policies related to energy infrastructure, subsidies for clean energy, and regulatory policies governing its sector. Increased government spending on energy infrastructure or tax incentives for clean energy would positively affect Southern’s business.
XEL (Xcel Energy) – High Exposure
Explanation: Xcel Energy is similarly impacted by government policies related to energy infrastructure investment, environmental regulations, and renewable energy incentives. Government fiscal spending on clean energy infrastructure or incentives for reducing carbon emissions would likely boost Xcel’s business.
WEC (WEC Energy Group) – High Exposure
Explanation: WEC, a utility company, operates in an environment that is influenced by fiscal policy, particularly in the areas of energy regulations, infrastructure investment, and renewable energy incentives. A change in government fiscal priorities could significantly impact WEC's capital spending plans and regulatory environment.
EVRG (Evergy) – High Exposure
Explanation: Evergy is another utility that depends on fiscal policy, particularly with regard to government incentives for renewable energy projects and infrastructure investment. Government fiscal policy can either encourage or inhibit Evergy’s growth depending on how subsidies and energy regulations evolve.
D (Dominion Energy) – High Exposure
Explanation: Dominion Energy is closely tied to fiscal policy, especially concerning energy infrastructure spending, environmental regulations, and subsidies for clean energy. Changes in government policy can directly affect Dominion's growth potential and profitability.
CWEN (Clearway Energy) – High Exposure
Explanation: Clearway Energy is in the renewable energy sector, which is highly dependent on government fiscal policies. Changes in subsidies, tax credits, or funding for clean energy projects will directly impact Clearway’s business. It is particularly sensitive to shifts in fiscal policy regarding renewable energy investments.
VOW (Volkswagen) – High Exposure
Explanation: Volkswagen is impacted by fiscal policies related to the automotive sector, including government incentives for electric vehicles (EVs), fuel standards, and infrastructure spending for EVs. The company’s European operations are particularly sensitive to EU fiscal policies supporting green technology.
./ second opinion
Low Exposure AES (AES Corp.), EXC (Exelon), NEE (NextEra Energy), DUK (Duke Energy), SO (Southern Company), XEL (Xcel Energy), WEC (WEC Energy Group), EVRG (Evergy), D (Dominion Energy), CWEN (Clearway Energy) Moderate Exposure VALE (Vale SA), SQM (Sociedad Química y Minera), RIO (Rio Tinto), ALB (Albemarle), MP (MP Materials), CSIQ (Canadian Solar), NVAX (Novavax) High Exposure MU (Micron Technology), QCOM (Qualcomm), LAZR (Luminar Technologies), POAHY (Porsche Automobil Holding SE), VOW (Volkswagen)
Low Exposure to Trade War:
These companies have relatively low exposure to trade wars as they are either less reliant on international markets or operate in industries less affected by tariffs and trade restrictions.
AES (AES Corp.) – Low Exposure
Explanation: AES, a global utility company, operates primarily in the energy sector, where trade wars have less direct impact compared to tech or commodities companies. While global energy supply chains could be affected by tariffs on equipment, AES's business is more insulated from trade disputes. AES operates in the energy sector, providing electricity, which is less sensitive to trade wars. Utility services are essential, and their demand is more driven by population growth and energy needs than by trade.
EXC (Exelon) – Low Exposure
Explanation: Exelon, a utility company, is less exposed to trade wars as its business relies more on domestic energy markets. While it does import equipment, its operations are mostly insulated from global trade tensions compared to more export-oriented industries. Exelon is a utility company focused on electricity and natural gas. Utility companies are relatively insulated from trade wars, as energy is an essential service.
NEE (NextEra Energy) – Low Exposure
Explanation: NextEra Energy, a renewable energy company, is largely unaffected by trade wars. While certain materials and technology imports could be impacted, the sector’s strong growth and focus on domestic energy needs provide a buffer against trade tensions. As a provider of renewable energy, NextEra is not directly impacted by global trade tensions. While some of its projects may involve international suppliers, the overall demand for energy remains largely unaffected by trade wars.
DUK (Duke Energy) – Low Exposure
Explanation: Duke Energy operates primarily in the U.S., and while international trade could influence its supply chain for certain equipment, its overall exposure to trade wars is low. Its focus on domestic energy markets shields it from the worst effects of trade conflicts. Duke Energy provides utility services in the U.S. and is insulated from trade war risks, as its business revolves around domestic electricity and gas supply.
SO (Southern Company) – Low Exposure
Explanation: Southern Company, like other utilities, is insulated from the direct effects of trade wars due to its primary focus on U.S. domestic operations. Any international impact would be indirect, primarily related to imported equipment for energy infrastructure. Similar to Duke, Southern Company is a utility provider, and its demand is tied to population and economic growth rather than global trade policies.
XEL (Xcel Energy) – Low Exposure
Explanation: Xcel Energy, focused on U.S. energy markets, is not significantly impacted by global trade tensions. While tariffs could affect the import of certain equipment, the overall business is primarily domestic, leading to low exposure. XCEL provides essential services (electricity and natural gas), making it less vulnerable to international trade disruptions.
WEC (WEC Energy Group) – Low Exposure
Explanation: WEC Energy, another U.S.-focused utility, has limited exposure to trade wars, especially as its core operations are based on providing energy domestically. The impact of trade conflicts would likely be felt in the supply chain but is minimal overall. WEC, a major utility provider, is not as affected by trade wars because its revenue stream is primarily from domestic energy needs.
EVRG (Evergy) – Low Exposure
Explanation: Evergy is primarily focused on the U.S. energy market, where its exposure to international trade and tariffs is limited. Any impact from trade wars would be minimal, mostly affecting imported energy infrastructure equipment. Like other utility companies, Evergy's business is less susceptible to changes in international trade policies, focusing more on local energy distribution.
D (Dominion Energy) – Low Exposure
Explanation: Dominion Energy operates in the domestic U.S. energy sector, so it faces relatively low exposure to trade wars. Although global commodity prices and tariffs on equipment could have some impact, the company’s focus on domestic energy production limits risks. Dominion Energy's services are essential, and its business is not directly tied to international trade, so it's less exposed to trade war risks.
CWEN (Clearway Energy) – Low Exposure
Explanation: Clearway Energy’s business, focused on renewable energy, is largely U.S.-based, so it faces limited exposure to trade war dynamics. Any potential effects would likely be related to the importation of energy equipment. Clearway Energy focuses on renewable energy and power generation, and like other utilities, its exposure to trade wars is minimal.
Moderate Exposure to Trade War:
These companies are somewhat influenced by trade wars, particularly if they rely on global supply chains or markets but are less directly impacted than those in the "High Exposure" category.
NVAX (Novavax) – Moderate Exposure
Explanation: Novavax, a biotechnology firm, is moderately exposed to trade wars, especially in the context of global supply chains for vaccines and other medical products. While it isn't as reliant on international markets as tech companies, global trade disruptions could still affect its raw materials and distribution. Novavax is a biopharmaceutical company developing vaccines. While not as directly tied to trade wars, disruptions in the global supply chain for medical ingredients and products can impact vaccine production and distribution.
RIO (Rio Tinto) – Moderate Exposure
Explanation: Rio Tinto, a large global mining company, is less exposed to trade wars than Vale or BHP, but still impacted by global trade disruptions. Tariffs on key raw materials, like iron ore and copper, can affect pricing and trade flows, although Rio's diversification helps mitigate the risks. Rio Tinto is a major mining company dealing in metals and minerals. It’s somewhat insulated from trade wars in the sense that mining and raw materials can be somewhat immune to tariffs, but it’s still vulnerable to global trade disruptions and the demand for steel and other metals.
ALB (Albemarle) – Moderate Exposure
Explanation: Albemarle, a global specialty chemicals company, supplies materials used in batteries and other technologies. Although it is impacted by global trade dynamics, its relatively diversified customer base across different industries helps reduce the direct impact of trade wars. Albemarle is a producer of specialty chemicals, including lithium for electric vehicle batteries. Trade wars may increase costs for raw materials or disrupt exports, particularly in a market like China, but Albemarle has more diversified markets for its products.
URG (Ur-Energy) – Moderate Exposure
Explanation: Ur-Energy, a uranium mining company, has moderate exposure to trade wars, particularly in relation to tariffs on commodities like uranium. While uranium is crucial to global energy production, trade disputes have less impact compared to companies in the tech or auto industries.
S32 (South32) – Moderate Exposure
Explanation: South32, a diversified mining company, operates in a variety of regions and sectors, which mitigates its risk from trade wars. However, its exposure to tariffs and global commodity prices means it is somewhat sensitive to trade tensions.
UMI (Umicore) – Moderate Exposure
Explanation: Umicore, a company involved in materials technology and recycling, is moderately exposed to trade wars due to its reliance on global supply chains for raw materials and the international markets for its products. Trade tariffs on critical materials could disrupt its business.
MP (MP Materials) – Moderate Exposure
Explanation: MP Materials, a rare earth materials producer, may see moderate effects from trade wars, especially as trade tensions between the U.S. and China impact the global supply chain for rare earth elements. However, its role in supplying critical materials to the tech sector somewhat insulates it from severe disruptions. MP Materials focuses on rare earth elements used in high-tech and green energy applications. While the company is strategic in the U.S. and global supply chains, trade wars, especially involving China (a major player in rare earth mining), could still disrupt global access to these materials.
CSIQ (Canadian Solar) – Moderate Exposure
Explanation: As a solar energy company that manufactures and sells solar panels, Canadian Solar may face trade risks, especially given the global trade dynamics around renewable energy and tariffs on solar components from China. However, the solar industry is supported by strong government incentives, which can mitigate some of the trade risk.
SQM (Sociedad Química y Minera) – Moderate Exposure
Explanation: SQM is involved in the production of lithium and other chemicals, primarily for the electric vehicle (EV) market. While trade wars can affect global demand for electric vehicles and disrupt shipping logistics, its exposure is less direct than the aforementioned companies.
VALE (Vale SA) – Moderate Exposure
Explanation: Vale is a major miner of iron ore and nickel, which are key commodities used in construction and manufacturing. While demand for these commodities is influenced by global economic activity, Vale is not as directly impacted by trade wars as tech or automotive companies. However, trade tensions can still disrupt supply chains and commodity prices.
High Exposure to Trade War:
These companies are directly impacted by trade policies, particularly tariffs and export restrictions, as they rely heavily on international markets or supply chains.
MU (Micron Technology) – High Exposure
Explanation: Micron, a semiconductor company, is highly exposed to trade wars due to its reliance on global supply chains and markets, particularly in China. The U.S.-China trade tensions and tariffs have already affected its business, as semiconductors are a critical area of trade between the two countries. Micron manufactures memory chips used in a wide range of devices, including smartphones and computers. As the U.S.-China trade war has directly targeted technology and semiconductor companies with tariffs, Micron is highly exposed. This is particularly relevant as China is a key market and a major supplier for the company.
VALE (Vale SA) – High Exposure
Explanation: Vale, a global mining company, is exposed to trade wars as it deals in commodities like iron ore, which are highly traded internationally. Any tariffs or restrictions on exports from countries like China could impact Vale's revenues significantly.
QCOM (Qualcomm) – High Exposure
Explanation: Qualcomm is involved in the global telecom sector, with heavy exposure to China. Trade disputes, tariffs, and export bans on products such as semiconductors or mobile technology can have an immediate impact on Qualcomm's business, especially with Chinese companies like Huawei. Qualcomm is a leader in mobile chipsets and patents for wireless technologies. It has a significant presence in both the U.S. and China, meaning tariffs and trade tensions between these countries affect its supply chains and sales. Additionally, trade restrictions on Chinese companies could affect Qualcomm's licensing business.
AMD (Advanced Micro Devices) – High Exposure
Explanation: AMD, like Micron and Qualcomm, operates in the semiconductor space and has significant exposure to trade conflicts, particularly with China. The company relies on manufacturing in Asia, and any tariffs or disruptions in the supply chain could hurt its margins.
LAZR (Luminar Technologies) – High Exposure
Explanation: Luminar, which specializes in lidar technology for autonomous vehicles, is a tech company dependent on global supply chains for components. Trade wars and tariffs could disrupt these international supply chains and increase manufacturing costs, impacting margins. Luminar makes lidar technology for autonomous vehicles. The trade war could disrupt its ability to source parts from overseas or sell its products in key markets, like China, which is a major player in the global automotive industry.
SQM (Sociedad Química y Minera) – High Exposure
Explanation: SQM is a leading supplier of lithium, a critical material for electric vehicle batteries. Trade wars, particularly between China and the U.S., can disrupt the global supply chain and affect the demand for lithium, making SQM highly sensitive to global trade tensions.
CSIQ (Canadian Solar) – High Exposure
Explanation: Canadian Solar, a solar energy company, operates globally and is affected by trade tariffs, especially from countries like China. Tariffs on solar panels or raw materials could increase costs and hinder global sales, especially in the U.S. and European markets.
POAHY (Porsche Automobil Holding SE) – High Exposure
Explanation: Porsche is impacted by trade wars due to its global manufacturing base and reliance on exports, especially in the U.S. and China. Trade tariffs on automotive parts or vehicles can significantly affect profit margins and sales. Porsche, a luxury automaker, faces potential tariffs on its vehicles when importing/exporting between the U.S., Europe, and China. A trade war involving tariffs on autos and parts directly impacts its profitability and pricing strategies.
VOW (Volkswagen) – High Exposure
Explanation: Volkswagen is a global automaker and thus exposed to trade wars, particularly with the U.S. and China. Tariffs on cars, parts, and raw materials could significantly impact its profitability and supply chain, especially since it operates in both the U.S. and China. Volkswagen has a large presence in the U.S., Europe, and China. With trade wars often targeting the automotive industry, tariffs on vehicles or parts would significantly impact Volkswagen's operations. A trade war would also make it harder to manage the supply chain for car parts and final vehicle assembly.
BHP (BHP Group) – High Exposure
Explanation: BHP, a major mining company, relies on global exports of commodities like iron ore and copper. Any tariffs or trade restrictions affecting global trade flows, particularly with China, can negatively affect BHP’s ability to sell its products.
./ second opinion
Low Exposure AES (AES Corp.), EXC (Exelon), NEE (NextEra Energy), DUK (Duke Energy), SO (Southern Company), XEL (Xcel Energy), WEC (WEC Energy Group), EVRG (Evergy), D (Dominion Energy), CWEN (Clearway Energy) Moderate Exposure VALE (Vale SA), SQM (Sociedad Química y Minera), RIO (Rio Tinto), ALB (Albemarle), MRNA (Moderna), NVAX (Novavax), BHP (BHP Group), S32 (South32), UMI (Umicore), MP (MP Materials) High Exposure MU (Micron Technology), QCOM (Qualcomm), LAZR (Luminar Technologies), POAHY (Porsche Automobil Holding SE), VOW (Volkswagen), CSIQ (Canadian Solar), TCNNF (Trulieve)
Low Exposure to Consumer Spending
These companies are less sensitive to changes in consumer spending as they operate in industries where demand is more tied to industrial, government, or essential services.
AES (AES Corp.) – Low Exposure
Explanation: AES is a utility company that provides energy services. Utilities tend to be more insulated from changes in consumer spending since energy is an essential service, and demand remains relatively stable regardless of economic cycles.
EXC (Exelon) – Low Exposure
Explanation: Exelon, a utility provider, is less impacted by consumer spending. While energy consumption can be influenced by economic conditions, it is an essential service, and demand typically remains stable even in recessions.
NEE (NextEra Energy) – Low Exposure
Explanation: As a renewable energy provider, NextEra Energy is not highly sensitive to consumer spending. Its services are essential, and energy demand tends to be more linked to population and industrial needs than to changes in discretionary spending.
DUK (Duke Energy) – Low Exposure
Explanation: Duke Energy operates in the utility sector, where demand is more predictable and less reliant on consumer spending. Energy is a necessity, so Duke’s revenues are more influenced by regulatory factors and population growth than by consumer behavior.
SO (Southern Company) – Low Exposure
Explanation: Southern Company, another utility provider, has low exposure to consumer spending. Energy consumption is a basic need, and while economic conditions can influence demand, it is less volatile compared to discretionary industries.
XEL (Xcel Energy) – Low Exposure
Explanation: Xcel Energy, like other utility companies, is relatively insulated from consumer spending changes. Its core service—providing energy—is essential, and demand remains stable even during economic slowdowns.
WEC (WEC Energy Group) – Low Exposure
Explanation: WEC Energy is focused on energy supply, which is an essential service. Consumer spending does not have a large impact on energy demand, so WEC Energy is less exposed to shifts in consumer behavior.
EVRG (Evergy) – Low Exposure
Explanation: Evergy provides energy, which is a basic utility. While economic conditions can affect energy usage, its exposure to consumer spending is low, as energy demand is less tied to consumer discretion.
D (Dominion Energy) – Low Exposure
Explanation: Dominion Energy is a utility company, where demand for services remains relatively constant and is less impacted by consumer spending trends.
CWEN (Clearway Energy) – Low Exposure
Explanation: Clearway Energy provides renewable energy, which is also an essential service. Its exposure to consumer spending is low, as energy demand is not directly tied to discretionary income.
Moderate Exposure to Consumer Spending
These companies are somewhat influenced by consumer spending, though they also have other factors influencing their revenue (e.g., business or industrial customers, international markets).
VALE (Vale SA) – Moderate Exposure
Explanation: Vale is a global mining company, and while its core products like iron ore and nickel are influenced by industrial demand, there is also some indirect exposure to consumer spending through the demand for steel (which is used in consumer products like cars and appliances).
SQM (Sociedad Química y Minera) – Moderate Exposure
Explanation: SQM, a lithium and potassium producer, has moderate exposure due to its involvement in the energy and tech sectors. Lithium is essential for electric vehicle batteries and consumer electronics, so a shift in consumer demand for these goods could influence SQM’s revenues.
RIO (Rio Tinto) – Moderate Exposure
Explanation: Rio Tinto is a global mining giant. While its core business (iron ore, copper, etc.) is more linked to industrial demand, there is some exposure to consumer spending through the downstream use of metals in consumer products like cars, electronics, and appliances.
ALB (Albemarle) – Moderate Exposure
Explanation: Albemarle manufactures specialty chemicals, including lithium. Its exposure to consumer spending is moderate because lithium is essential for electric vehicles and consumer electronics, sectors that rely on consumer demand.
MRNA (Moderna) – Moderate Exposure
Explanation: Moderna, a biotech company, is primarily focused on vaccines, so its exposure to consumer spending is moderate. While vaccine uptake is partly influenced by consumer behavior, government and institutional spending also play significant roles in its revenues.
NVAX (Novavax) – Moderate Exposure
Explanation: Similar to Moderna, Novavax’s revenues are influenced by government contracts and global health needs more than by direct consumer spending. However, consumer decisions related to vaccination could still indirectly impact its revenue.
BHP (BHP Group) – Moderate Exposure
Explanation: BHP, a global mining company, relies heavily on industrial demand. However, as mining products (like copper, coal, and iron ore) are used in consumer products (cars, electronics), changes in consumer spending can indirectly affect demand for BHP's materials.
S32 (South32) – Moderate Exposure
Explanation: South32, another mining company, has moderate exposure to consumer spending due to its products' use in consumer goods (such as aluminum in vehicles and packaging), though industrial demand is the primary driver.
UMI (Umicore) – Moderate Exposure
Explanation: Umicore produces materials for automotive and electronics applications, which are linked to consumer spending. Its exposure is moderate, as demand for materials in electric vehicles and electronics fluctuates with consumer preferences.
MP (MP Materials) – Moderate Exposure
Explanation: MP Materials supplies rare earth elements, which are crucial for electronics, electric vehicles, and green energy technologies. Its exposure to consumer spending is moderate, as these products are dependent on consumer demand for technology and clean energy solutions.
High Exposure to Consumer Spending
These companies are highly sensitive to fluctuations in consumer spending as they are involved in discretionary products or services that consumers purchase during times of economic growth.
MU (Micron Technology) – High Exposure
Explanation: Micron produces memory chips, which are integral to consumer electronics like smartphones, computers, and gaming consoles. Consumer demand for these products directly affects Micron’s revenue, making it sensitive to changes in consumer spending.
QCOM (Qualcomm) – High Exposure
Explanation: Qualcomm manufactures semiconductors for mobile devices and other consumer electronics. The demand for smartphones and consumer tech directly influences Qualcomm's business, tying its performance to consumer spending trends.
LAZR (Luminar Technologies) – High Exposure
Explanation: Luminar develops lidar sensors for autonomous vehicles, an industry dependent on the adoption of consumer vehicles. While the long-term demand for autonomous vehicles is driven by technological trends, it is ultimately influenced by consumer spending on new cars.
POAHY (Porsche Automobil Holding SE) – High Exposure
Explanation: Porsche, a luxury car manufacturer, is highly exposed to consumer spending, especially in the premium car segment. Economic downturns that affect discretionary income can directly reduce demand for luxury vehicles.
VOW (Volkswagen) – High Exposure
Explanation: Volkswagen, a major global automaker, depends on consumer spending for vehicle sales. Economic slowdowns can reduce demand for cars, especially higher-priced models, making Volkswagen sensitive to consumer sentiment and purchasing power.
CSIQ (Canadian Solar) – High Exposure
Explanation: Canadian Solar manufactures solar panels, which are influenced by consumer spending, particularly in the residential sector. While some demand is driven by government incentives, a portion of it is dependent on consumers' willingness to invest in renewable energy systems.
TCNNF (Trulieve) – High Exposure
Explanation: As a leading cannabis retailer, Trulieve’s sales are closely tied to consumer spending, especially discretionary income. Consumer behavior and spending patterns on non-essential goods, including cannabis, directly impact Trulieve's performance.
POAHY (Porsche Automobil Holding SE)
High Interest Rates: Moderate
Strong Dollar: Moderate
Inflation: Moderate
Overall Exposure: Low to Moderate
MU (Micron Technology)
High Interest Rates: Moderate
Strong Dollar: High
Inflation: Moderate
Overall Exposure: Moderate to High
AMD (Advanced Micro Devices)
High Interest Rates: Moderate
Strong Dollar: High
Inflation: Moderate
Overall Exposure: Moderate to High
AES (AES Corp)