RJ Hamster
Grid Failures and Aging Power Grids Mean Opportunity
| Grid Failures and Aging Power Grids Mean OpportunityBy Joe Austin, senior analyst, Chaikin AnalyticsWhen you’re traveling internationally, plenty of things can go wrong… A delayed flight or a few days of rain are minor inconveniences. But losing your passport or your luggage is far worse. These situations become even more challenging when you don’t speak the local language. As for me, I’m starting to think that I’m cursed when it comes to power outages… Earlier this year, I was in Barcelona when most of Spain and Portugal lost power. The outage affected millions of people across the Iberian Peninsula. Now, I’m returning from São Paulo, Brazil… where it happened again. In Spain, the cause was a surge in power in the electrical grid. But in São Paulo last week, it was the wind. São Paulo is the sixth-largest city in the world. It has about 23 million inhabitants. But most of the city’s electrical infrastructure is still above ground. This is what it looks like in Pinheiros – one of the city’s more affluent neighborhoods…  Over the course of a few short hours, 60-mile-an-hour winds knocked down power lines. About 2.2 million homes lost power.I was staying in a two-year-old ultramodern building when the outage struck. But it still took two days before the power returned. Parts of São Paulo didn’t even have water. The city’s pumping stations had no backup power. But whether it’s Barcelona or São Paulo, power outages are everywhere these days… A recent survey by J.D. Power found that in the U.S., 45% of all utility customers experienced a power outage in the first six months of this year. Nearly half of those reported outages were the result of extreme weather. And for 17% of folks affected by a natural disaster, the outage was so bad that they had to evacuate their homes. According to J.D. Power, the average length of U.S. power outages is up from 8.1 hours in 2022 to 12.8 hours by midway through 2025. The most severe outages are in the Southern U.S., where the survey found that 77% of customers lost power because of an extreme weather event. And the average length of those outages was more than 95 hours. Extreme weather is clearly a major factor. But it’s only part of the story. The increasing frequency and severity of outages point to far deeper issues. The reality is that our electrical grid is under threat from multiple angles…Recommended Links:Here’s What You Missed Yesterday (See Immediately)Two legendary quant investors just debuted a never-before-seen software collaboration that could help you SELL any stock before it crashes 20% or more in the short term. This same software detected upcoming flash crashes in MSTR, BBWI, TTD, and more before they each dropped 20% or more during last month’s sell-off. Stream the full replay here.Trump’s Next Real Estate Deal Could Pay YOUPresident Donald Trump’s real estate deals have returned as much as 4,800%. That’s enough to turn every $1,000 into $49,000. But his next “real estate deal” is different – and much bigger. It involves federal assets worth an estimated $5.1 trillion. And any American citizen can stake their claim. The mainstream media is largely ignoring this, but a former Trump adviser just went on the record. Get the full details here.Electricity Demand Is Increasing as the Grid Comes Under More Pressure The U.S. electrical grid is aging fast. Many components have been in use far longer than their intended lifespans. This isn’t exactly a new problem, either… In 2018, the U.S. Energy Information Administration (“EIA”) said that 70% of power transformers were at least 25 years old… 60% of circuit breakers were at least 30 years old… and 70% of transmission lines were at least 25 years old. And the EIA took those figures from a 2015 report by the U.S. Department of Energy. Just keeping things running and modernized through 2030 is expected to cost $1.4 trillion. Longer term, a similar level of investment will likely be necessary every five years through 2050. There are also two near-term drivers of stress on the grid… Coal and nuclear plants provide steady, around-the-clock power. And utilities are retiring them faster than they can build new, reliable plants to replace them. According to a Department of Energy report from earlier this year, 104 gigawatts of coal, gas, and nuclear plants will retire by 2030. Just 22 gigawatts of equally reliable capacity will replace them. That means the grid would increasingly rely on power from alternative sources like wind and solar. But green energy only generates power when conditions are right. And without a huge investment in battery storage, the grid can’t keep the lights on. And battery storage is expensive. Through 2034, the expected price tag comes in at $1.2 trillion. Then there’s a huge increase in demand from AI data centers. Regular Chaikin PowerFeed readers know all about this trend… According to the International Energy Agency (“IEA”), a typical data center uses the same amount of power as 100,000 homes. But the most powerful ones under construction today will use 20 times that amount. The IEA also projects that data-center power consumption will more than double by 2030. Beyond all that, everyday use of electricity is growing as well… From 2008 to 2021, demand in the U.S. was steady – growing only at about 0.1% per year. It dipped by 1.3% in 2023. But in 2024, it grew by 3%. That was the fifth-highest annual demand increase in this century. Put it all together, and we’re trying to push more power through a crumbling grid… while we don’t have enough reliable sources of supply. Of course, as investors, we can take advantage of this broad theme of battery storage and grid modernization…Finding Opportunity Amid the Grid Upgrade Exchange-traded funds (“ETFs”) are a great place to start looking for opportunities… One ETF to watch is the First Trust Nasdaq Clean Edge Smart Grid Infrastructure Index Fund (GRID). It’s up about 23% over the past year. And the Power Gauge is currently “bullish” on the fund. Another interesting ETF is the Global X Lithium & Battery Tech Fund (LIT). It’s up roughly 45% over the past year. And our system is “very bullish” on the fund right now. Of course, the holdings for these funds are also great places to look for individual stocks in the broader theme. When I set out on my trips this year, I didn’t plan to experience two massive grid failures firsthand. That’s the luck of the draw when you’re on the road. But inconveniences sometimes come with little lessons, too… Grids across the globe have their challenges. But as investors, we can profit from the fix. Good investing, Joe AustinMarket ViewMajor Indexes and Notable Sectors # HLD: BULLISH NEUTRAL BEARISH  Dow 30-0.66%1011 9S&P 500-0.27%113237 147 Nasdaq+0.2%2252 26Small Caps-0.81%689871 339Bonds+0.55%— According to the Chaikin Power Bar, Small Cap stocks are more Bullish than Large Cap stocks. Major indexes are mixed.* * * *Sector TrackerSector movement over the last 5 daysMaterials+3.71%Consumer Discretionary+3.35%Health Care+2.74%Financial+2.55%Industrials+1.83%Consumer Staples+1.65%Utilities+0.68%Communication+0.22%Real Estate+0.12%Information Technology-3.69%Energy-4.14%* * * *Industry FocusRegional Banking Services101404Over the past 6 months, the Regional Banking subsector (KRE) has outperformed the S&P 500 by +5.97%. Its Power Bar ratio, which measures future potential, is Very Strong, with more Bullish than Bearish stocks. It is currently ranked #2 of 21 subsectors and has moved down 1 slot over the past week.Top Stocks ZIONZions BancorporationAMALAmalgamated FinanciaAXAxos Financial, Inc.* * * *Top MoversGainers CMCSA+5.39%UAL+4.44% SNDK+3.69% HOOD+3.59% EL+3.33%LosersPSX-6.88% HUM-6.03%MOS-5.63%APA-5.18%MPC-4.7%* * * *Earnings ReportEarnings SurprisesLEN Lennar Corporation Q4 $2.03 Missed by $-0.15 WOR Worthington Enterprises, Inc. Q2 $0.65 Missed by $-0.05* * * *You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, click here.You’re receiving this e-mail at peter.hovis@gmail.com.For questions about your account or to speak with customer service, call +1 (877) 697-6783 (U.S.), 9 a.m. – 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. Please note: The law prohibits us from giving personalized financial advice.© 2025 Chaikin Analytics, LLC. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Chaikin Analytics, LLC. 201 King Of Prussia Rd., Suite 650, Radnor, PA 19087. www.chaikinanalytics.com.Any brokers mentioned constitute a partial list of available brokers and is for your information only. Chaikin Analytics, LLC, does not recommend or endorse any brokers, dealers, or investment advisors.Chaikin Analytics forbids its writers from having a financial interest in any security they recommend to our subscribers. All employees of Chaikin Analytics, LLC (and affiliated companies) must wait 24 hours after an investment recommendation is published online – or 72 hours after a direct mail publication is sent – before acting on that recommendation.This work is based on SEC filings, current events, interviews, corporate press releases, and what we’ve learned as financial journalists. 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