Hot Stocks

The world is warming, our portfolios will have to adapt, and the stocks we own can help shape our future; James Ellman shows how to invest wisely as climate change impacts multiple sectors across the stock market.

The costs of global warming and its mitigation will have a major impact on equity market performance over the next two decades. As the climate changes, investors will need to understand which are the best-positioned market sectors and stocks as well as those to avoid. Hot Stocks provides a roadmap detailing how to invest in this new reality. It evaluates the many ways global warming will affect profit flows in the economy, such as:

• Impacts of a warmer climate, rising ocean levels, more frequent extreme storm events, land desertification and ocean acidification.

• Potential for government taxation on greenhouse gas emissions.

• Accelerating switching to renewable power systems that are increasingly cost competitive with those powered by oil fossil fuels.

• Government bans on sales of cars powered by internal combustion engines and the electrification of the terrestrial vehicle fleet.

• Potential for hydrocarbon reserves and equipment becoming impaired or ‘stranded assets’.

• Rising demand for major infrastructure projects to protect valuable coastal real estate from inundation.

• Litigation aimed at forcing legacy polluters to pay mitigation costs.