Green is just a large speculative bubble: even Tronchetti Provera says so
How do you give true information by hiding it and making it overshadow? By burying it under a fake title. The “ Sole 24 ore ” dedicates an interesting article to Ambienta, the latest financial initiative by Nino Tronchetti Provera, the “Ambienta” fund.
The problem is the difference between what the title says and reality: the title enhances the explosion of the so-called "Green Bonds", those dedicated to the energy transaction. Let's read it: “ International capitals turn to green finance” Assets managed by closed-end funds, dedicated to the green economy, will double by 2025, exceeding 9 trillion dollars “. So, reading the headline, there would be a huge boom in green finance, which, reading the headline, really appears to be the future of finance.
Too bad that the article then says almost the opposite, when it describes the activity of the "Ambienta" fund: " Ambienta has set up a long-short fund that today exceeds 600 million dollars, also to take short positions on assets that we believe have valuations that do not correspond to the underlying. The market, in fact, is rewarding companies that make themselves attractive through green washing, but we, who have the skills to evaluate them, sell them short ”. So Nino Tronchetti Provera says it clearly: we are in a real green finance bubble in which the yield of the securities does not respect the income prospect of the same. The good speculator knows how to evaluate the true value of securities and is ready to sell them short.
This is a strong statement, also because Tronchetti Provera has no problems in comparing the current situation with the “dotcom” bubble of 2000, when anything connected to the web was in the bubble, only to implode in a few months. Reuters recalls how there was a record of issuance of ESG, social and green securities, amounting to 777 billion dollars from January to September 2021, a flood of money raised often without having a serious investment perspective, with excellent opportunities of being misused and in projects with no future. A disaster for the saver, a boon for those who take short positions, that is, sell short.
In 2019 there was a small shock on green bonds in China . It is now feared in the UK that the British 'Green' title will cost the taxpayer an extra £ 165m. Yet the "Green bonds", issued by the Commission and even by Italy, seem like a great innovation. Definitely a useful product for those who shorta.
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The article Green is just a large speculative bubble: even Tronchetti Provera says it comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/il-verde-e-solo-una-grande-bolla-speculativa-lo-dice-perfino-tronchetti-provera/ on Mon, 25 Oct 2021 08:00:47 +0000.