RE:RE:RE:RE:Hey Suncor do something !!!Marty.....can't agree with your conclusion - BUT...it has nothing to do with whether there is climate change or not.
A while back, I talked about the conclusions of the Club of Rome analysis from 1972. In an oversimplification, they said that there will be too many people on earth and this presents a limit to growth and postulated that the result would be a significant drop in world population (as George Carlin said in his skit - "The World will take of itself")
So what is the real problem that we as investors should be thinking about?
Since 1960, the amount of arable land per person on earth has declined every year due to many factors, the most significant is the conversion of arable land to population centres (growth of metropolitan areas taking over farmland). This decline has accelerated over the past 25 years. Meanwhile, population continues to gtow, The FAO forecasts that food production will need to grow about 60% between now and 2050 while the amount of farmland declines each year.
Soooo...unless there is a significant annual growth in productivity for food production each year, the world is going to run out of food to feed everyone. Can this happen? I suppose but it could such productivity gains but it will be a challenge and unlikely IMHO.
What should investors be looking at?
The implications of this are many but here are some of the biggies...
1...we will see more international migration (legal and otherwise) than we are already seeing - this will put greater strain on the debt of the developed countries and hence a lower standard of living
2...we will see more conflict (eg Ukraine is the Breadbasket of the world) - we have talked about this in recent posts here
3...we will see more food inflation and hence higher overall inflation rates and high interest rates
4....for those much younger than me - mass starvation and a significant decline of the world population - less people - less economic growth - lower equity valuations...less people - less oil demand
What is the bright side?
If you understand this and invest in companies that will benefit from this long term trend line you will do very well. If you stick to the status quo...well I think you know the answer!!