Though it might be hard to believe, the truth is climate change is affecting the economy. Those age 50 and older might not experience a significant impact on their career, investments or quality of life resulting from climate change, but the younger generation most likely will. It is probable that humans will have to reshape the entire economy to preserve our environment.
A Green New Deal Would Change Nearly Everything
If a Green New Deal or similar legislation were passed into law in the years to come in an attempt
to preserve our environment, capitalism as we know it would drastically change. Gas-powered vehicles would be phased out in favor of electric vehicles along with public transportation. Carbon caps would be implemented. Businesses that pollute the increasingly sensitive planet would face harsh financial penalties.
Consider the Impact of Climate Change on Investing
As a result of a potential Green New Deal or a similar initiative, that many more investing dollars would be poured into alternative energy stocks. Meet with a financial advisor to discuss these potential changes and you will find those who closely follow the stock market may have already moved some of their hard-earned money into alternative energy stocks and ETFs. Various energy sources, from wind power to solar power, electric vehicles and work from home (WFH) stocks will attract more interest from investors as society gradually pivots away from wasteful excess in favor of a more sustainable approach to doing business.
Capitalism vs. Governmental Regulations Designed to Help the Environment
There is some fear that an overreaction by the federal government or possibly even the UN will send the global economy into a tailspin. There is a delicate balance to achieve between saving the planet and keeping the economy steadily moving. Most people do not want to sacrifice their quality of life for posterity’s sake. It is a genuine possibility that the government could overstep boundaries, pass constrictive laws that suffocate private enterprise and be detrimental to the entire economy over time. The flipside to the hypothetical mentioned above is the potential for inaction on climate change take a chunk out of private enterprise bottom lines. Extreme weather, an increasingly inhospitable planet and other climate change-related problems will make it difficult to operate as normal.
Disruptions to the supply chain, compromised infrastructure and erratic weather really can be a legitimate threat to capitalism as we know it. Instead of attempting to predict the future on your own, place your trust in the experts. Meet with a financial advisor to review your investment portfolio and determine if you are properly positioned to benefit from the changes caused by climate change.
The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of the author and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Investing involves risk and you may incur a profit or loss regardless of strategy selected. This is not a recommendation to purchase or sell the stocks of the sectors mentioned.
Investing in the energy sector involves special risks, including the potential adverse effects of state and federal regulation and may not be suitable for all investors.