Reports that President Trump may pull America out of the Paris Climate Accord is pressuring energy companies as concerns mount about financing for projects if the country with the deepest pockets walks away.

It’s a terrible deal to begin with that sees the United States forking over close to $200 billion and tamping down on economic growth, while China and India get the green light for unlimited growth and pollution.  Moreover, it’s a terrible deal for third world countries that accepts bribes in return for growing their economy slower.

The Van Eck Vectors Coal ETF was already under considerable pressure after galloping out the gate in 2017, and in the past month, the ETF is off 7.79%.  Note: there are only two US names in the top ten holdings as the majority are China 25.7%, Australia 17.4%, Indonesia 13.7% and Canada 12.4%.

I think these names are oversold, but lingering political uncertainty stops me from adding to names.

Another part of anxiety is the fact that America, as promised, is moving out of large global deals that facilitate local and international economies.

Late yesterday, Wilbur Ross said he was ready to talk about large mega-trade deals. 

Dumping bad deals is what the American public wants and allows for better deals.  The next 48 hours shifts back to the economy with the jobs reports from ADP and the Bureau of Labor Statistics.

Let’s hold off for the remainder of the day.