In this Stockhead series, investment manager James Whelan, managing director Barclay Pearce Capital Asset Management, offers his insights on the key investment themes and trends in domestic and global markets. From macro musings to the metaverse and everything in between, Whelan offers his distilled thoughts on the hot topic of the day, week, month or year, from the point of view of a professional money manager.

 

Good morning and here’s to another massive Tigers win against the Raiders, Swans win against the Giants and Port getting the absolute tar kicked out of them by anyone once again.

These cold days and long nights are about the time when calendars turn to what the plans are for Saturdays in late September.

Footy is life and life is lovely.

 

What else is lovely today?

Grab a bevy. Take a seat. Enjoy your regular reminder as to why things keep on ticking and why it pays to be invested.

Here’s a chartstorm to kickstart a story of cause and effect.

 

And if you’re wondering why “complacency” is the word of the day then here it is.

The below, as a result of the above.

And a continual pile up of fundies believing that, “Long the Mag 7” is both required and crowded.

Take this for an example from the recent BofA Fund Manager Survey.

Massively outstripping the months’ previous returns…

 

magnificent 7 stocks
Via GenuineImpact

 

 

Data Centres and how to power them

Two “must listen” podcasts this week.

First is my own, obviously, in which Heath and I discuss elections, inflationary pressures on the Tooth Fairy, natural gas prices and Guzman & Gomez’s listing and burritos.

And the second one to check out is the recent Odd Lots podcast by Bloomberg, they have the CSO of specialised cloud provider CoreWeave talking not only about chips, but on my favourite “topic du jour”, energy consumption caused by data centres.

Here’s the link but I’ve got more detail below.

The quote is from Robert Friedland of Ivanhoe Capital.

“Per Bloomberg AI Is Already Wreaking Havoc on Global Power Systems: Globally, there are more than 7,000 data centers built or in various stages of development, up from 3,600 in 2015. These data centers have the capacity to consume a combined 508 terawatt hours of electricity per year if they were to run constantly. That’s greater than the total annual electricity production for Italy or Australia. By 2034, global energy consumption by data centers is expected to top 1,580 TWh, about as much as is used by all of India.”

 

magnificent 7 stocks
Via Whelan

In 10 years, data centres will use the same amount of power as India today.

And the effect of this?

In my view it’s more things like this which started appearing on the feed over the weekend.

It’s a Micro Reactor being built by Rolls Royce.

magnificent 7 stocks
Via Rolls Royce

 

Popping up in the narrative

These aren’t the way forward for data centres (they’re too small) but it’s funny how casually these are now appearing in the narrative.

Locally, Dutton is ahead in the polls, and I believe a good part of that is because of last week’s headline nuclear policy. The weekend contained a whole AFR edition of nuclear conversation.

I have more to say on that matter but am time poor at the moment.

For now…

All the best and stay safe,

James

 

 

The views, information, or opinions expressed in the interview in this article are solely those of the writer and do not represent the views of Stockhead.

Stockhead has not provided, endorsed or otherwise assumed responsibility for any financial product advice contained in this article.