Basketball players succeed or fail based on their ability to know where the ball will be, not where it is, on any given play.
Likewise, we need to look at where the economy will be, not at where it’s at today.
If anything, over time the economy moderates. In other words the economy never stays too hot or too cold.
Right now, the economy is super hot. Most everything that has a price tag to it is high: homes, food, cars, stock prices. Take it from me, you never know exactly how these asset prices will eventually cool off, so the best bet is to look ahead to where the economy will be once it does cool off.
So here’s what I see. Prices for everything will respond to the new reality we have never experienced before: Climate change. Everything we own will adjust to living in a world that responds to warmer weather.
Everything I will invest in will contribute to cooler and cleaner weather. That’s where the economy WILL be.
I’m not going crazy all at once on going environmentalist. I’ve started reading on Wikipedia how much global cash flow is being invested in climate friendly companies and products. I’ve then started strategizing with my financial adviser on investing small amounts in environmentally friendly enterprises.
And yes, I plan on buying an electric car in the next two years when the lease is up on my present car.
I’ve also started reading on how best to take care of my body during, not just warmer weather, but severe heat waves, which will be coming more frequently. One interesting article explained that my house has to be cool enough for my body to recover after a day of above 100 degree day time weather. That’s important information for me because of my age. I’m 76. Actually it’s important for the future well being of my young grandchildren. According to the article, the temperature in the home needs to be somewhere in the vicinity of 73 degrees for the body to adequately recover.
That’s all for this week. Just start going to where the ball will be.