Knowing Your Bets
KOL is a well-designed fund providing unique exposure to an interesting corner of the global market.
But importantly, it should not be considered a “Trump trade.” KOL will rise and fall primarily on the supply and demand for coal not in the U.S., but in broader Asia. That’s a hot-button region all its own.
China recently decided to no longer accept coal from North Korea, leaving an entire fleet of coal freighters looking for new buyers in the South China Sea. The U.S. has an aircraft carrier parked in the region. Australia is finally getting the coal moving again.
These are the headlines that are going to move KOL, not a rash of executive orders from the Trump administration.
At the time of writing, the author owned none of the securities mentioned. You can reach Dave Nadig at [email protected].