DEER ISLE: Insights, Flows & Investment Trends (May 2022)

Inflation/Trucking: New truckers are entering the system, so pricing should come down. According to a trucking logistics company, spot prices for semi loads have risen as high as 2x historical prices, attracting new drivers to enter the market. This should lead to lower trucking prices indicating fewer supply chain problems taking pressure off inflation.

China Liquid Markets: Large U.S. pensions and international China Family offices are starting to invest in China liquid markets through investment in hedge funds given current valuation levels despite China headwinds.

Ukraine: Europe would not be fighting in the Ukraine without U.S. leadership. Political discord includes whether the battle is worth the risk and economic disruption. This economic effect seems to indicate that the U.S. dollar will remain strong. In addition, Europe is not one nation and does not want to be considered such, and the impact of the economic disruption is varied by country, as heard from our European contacts.

Clean Energy: Large international power company looking to invest into U.S. Clean Energy projects that include battery storage. These can include those projects that are ancillary services.