Climate change is sometimes misunderstood as being about changes in the weather. In reality it is about changes in our very way of life.
Our long-term Investment Megatrends
Last Stages of the Debt Supercycle
Changing Demographics
The Rising Gap between Rich and Poor
Rise of the East
The Era of Disruption
The above six megatrends result in
The Mean Reversion of Wealth-to-GDP
The climate is changing rapidly. Sea levels are rising with large parts of the world suffering from frequent flooding. Meanwhile, other parts struggle from severe drought with access to freshwater becoming a major problem. According to WWF, if our planet warms by more than 2C, most ecosystems will struggle.
The war against climate change is gathering pace with governments all over the world intent on phasing out fossil fuels. One obvious way to do that would be to electrify all heating and transportation. Electrification has significant implications for a number of industries. For hundreds of years, the combustion engine has been the driving engine behind economic growth, but that is about to change. Consequently, demand for coal and gas could virtually disappear, whereas demand for oil could drop to a fraction of today's levels. Various new digital technologies, e.g. AI, IoT, and blockchain, will only increase the pace of electrification.
As part of our commitment to responsible investing, we are signatories of the UN PRI and have linked this megatrend to the following UN Sustainable Development Goals:
Read our in-depth megatrend paper
Related ARP+ Insights – for ARP+ subscribers
How to invest in water
To Be or Not to Be? A note on Responsible Investing
Investing in Natural Resources in a Changing World (Part V of V)
Investing in Natural Resources in a Changing World (Part IV of V)
Investing in Natural Resources in a Changing World (Part III of V)
Investing in Natural Resources In a Changing World (Part II of V)
Investing in Natural Resources In a Changing World (Part I of V)
The Bull Case on Uranium
Related Absolute Return Letters
A Future Embedded in the Present
Energy Misconceptions
Addicted to Oil?
More on the Productivity Conundrum
Will Lithium Sink OPEC?
The Death of Fossil Fuels? Really?
Running Out of Freshwater
Oil Price Target: $0 (by 2050)