How The Science Behind The Climate Crisis Impacts Investments

It has been said that we have a climate crisis. And a number of big-time, intelligent investment gurus have posited how this will ultimately impact our investments. We won't name names. But we will say that we have always admired some of these gurus. 

As for their views on the climate crisis, we note the following. And we note it here because the media, including the financial media, has assiduously ignored these 1,609 scientists. Why they did and continue to do so we'll leave up to you to figure out.

Our steady perusal of a wide array of financial sources was how we came across the letter. We recommend you so the same: check a wide array of sources - not just those with whom you agree; and not just those whom you know to be reliable and therefore important. 

Not that you should spend a lot of time with such sources. But it's helpful if you know what they're saying. 

Before we get into more detail on this most interesting letter - the one that's being mostly ignored - a quick note on what happened last week in markets. Of course, if you follow the markets because you have investments and like to be "on top" of what's happening, you know that stocks took a hit. Was this the start of a "Big One" that typically comes in the fall. (Oh, by the way, it's the first day of fall today.) Who knows? The fall wasn't out of the realm of a continued upsurge. It could just be a correction. We'll see.

Yields, though, have continued to grind higher, pushing bond prices down, as they have for weeks now. Own bonds? Not pretty. Only the shortest duration bonds (3-month to maybe 2-year treasuries) have been worth your hard-earned dollars.  

As for Precious metals, they continue to flop. But note this: Despite the higher bond yields and strength in the US dollar, gold prices have remained relatively resilient. A sign of strength and perhaps a building of a base from which to launch in the near-future? We'll see.

Anyway, you can find a pretty good analysis of the letter HERE. We'll provide some highlights. But first, after reading this analysis - especially if you think it makes some sense - you will want to revisit the gurus, even the smart ones, who think a climate crisis will impact your investments, never mind our world.

Let's make this simple: If there's not climate crisis, there's nothing that will ultimately affect our investments, or, more importantly, our world.

So here are the highlights:

"There's no climate emergency. And the alarmist messaging pushed by global elites is purely political. That's what 1,609 scientists and informed professionals stated when they signed the Global Climate Intelligence Group's 'World Climate Declaration.'...

"The declaration's signatories include Nobel laureates, theoretical physicists, meteorologists, professors, and environmental scientists worldwide...

"There is plenty of evidence that average temperatures were higher during the so-called Medieval Warm Period (centered around the year 1000), the Roman Warm Period (when grapes and citrus fruits were grown in now much colder Britain), and in the early Holocene (after the last regular Ice Age ended)...

"The public perception of carbon dioxide is that it goes into the atmosphere and stays there," Mr. Berry said. "They think it just accumulates. But it doesn't...

"[The IPCC is] saying that something is different about human carbon dioxide and that it can't flow as fast out of the atmosphere as natural carbon dioxide," Mr. Berry said. "Well, IPCC scientists—when they've gone through, what, billions of dollars?—should have asked a simple question: 'Is a human carbon dioxide molecule exactly identical to a natural carbon dioxide molecule?' And the answer is yes. Of course!

"Well, if human and natural CO2 molecules are identical, their outflow times must be identical. So, the whole idea where they say it's in there for hundreds, or thousands, of years, is wrong...

"Mr. Berry said that the IPCC doesn't engage in skepticism of its theories and, therefore, the scientific method that governs all science.

"They were set up as a political organization to specifically convince the public that carbon dioxide was causing problems...

"When asked why CO2 was singled out as the cause of the climate emergency, Mr. Alexander said it goes back to James Hansen, an astrophysicist and the head of NASA's Goddard Institute for Space Studies from 1981 to 2013, and an ardent environmentalist.

"Hansen developed one of the first computer climate models and began to make highly exaggerated predictions of future warming, none of which have come true...

"As for why climate models are so inaccurate, Mr. Alexander said: "Computer simulations are only as reliable as the assumptions that the computer model is built on, and there are many assumptions that go into climate models. Assumptions about processes we don't fully understand require approximations..." 

Do read the whole article. Think about it. Don't dismiss it because your "invested" in a climate crisis. If it's not real, then your investment is worth nothing. And your investments, if they are skewed in some fashion to benefit or defend yourself from a climate crisis, will not fare are well as they might if you dismiss this so-called crisis.

Just sayin'.