Oh oh! The subprime backlash has met the global warming backlash!
Al Gore had to take the two biggest spin words of 2007 and combine them into a really scary scenario at a UN meeting with institutional investors. He warned the executives that they ought to clean their portfolios of carbon-intensive industries, as those inevitably will lead to huge losses.
I can’t help but feel that there is some magic in his words, as Al Gore himself has worked hard to make it harder to run and operate carbon-intensive portfolios. Maybe I can get paid $100,000 per speech to explain the investment consequences of the policies I have promoted, that would be sweet!
He is “misunderestimating” one thing though: human ingenuity and adaptability. As energy rationing makes it harder to run carbon-intensive industries, those companies will find other energy sources and transform their companies. The other ones will die at the hands of capitalism’s creative destruction. That is an investment tip from me, and it’s totally free!