In today’s Money Morning…Paris, you’re fired…don’t sit on the fence, but play both sides of it…opportunity for 2,000,000% gain sounds impossible, but today the impossible is possible…and more…
‘You’re fired, Paris.’
That’s probably what Donald Trump said as he decided the US would exit the Paris Climate Accord.
Trump doesn’t like the Paris Accord. He thinks it benefits China at the expense of the US. And he doesn’t really believe in climate change anyway. So probably best he’s not a part of it. Leave it to the 200 other signatories, Mr. Trump.
The thing is he’s left, but really only to re-enter at another time. His plan is to renegotiate the accord. In doing so, he hopes to get a better deal for the US. If he does that’s good news for America, and that also means…he does believe in the Paris Accord, then?
Oh, it’s all too confusing.
To his credit he’s a shrewd negotiator. He’s playing the best bargaining chip of all time — if there’s no new deal, they just walk away.
It’s not really that important to him. In motor racing there’s a saying that, ‘an uninterested driver is a dangerous one’. And in our view Trump is just uninterested in the Paris Accord.
But he’s got another problem. They can’t actually pull out until November 4, 2020. Now that date might seem a way off, and insignificant.
But do you think it’s any coincidence that it’s a day after the next US presidential election? We don’t believe in coincidence — not when it comes to Trump, that is.
We’ve come to thrive on this debate of climate change. So has Trump, it seems. And let’s not forget our editorial team here at Port Phillip Publishing. You only need to canvas our editors to get some emotive responses on the issue.
Warming up or ice age?
Kris Sayce and Jason Stevenson don’t buy it. In fact Jason, who writes over at Markets and Money is adamant that we’re not far off another ice age.
We applaud Jason’s conviction, but we disagree. We believe that climate change is a legitimate concern which the world should take note of. We think that the industrialisation of the world has been great for human progress, but detrimental to the environment.
And we think that all efforts should be made to clean up industry and preserve our natural environment where we can. But at the end of the day the planet is going to blow up in a couple billion years anyway. So in that case who really cares?
We’re not saying throw rubbish out your windows and burn tyres in the backyard. You should still give a stuff about the world you live in. You should care about the world you’ll leave behind when you’re dead. You should care about the generations to come and the world they will live in. But really, who cares if the world heats up, cools down or does all of the above?
If it’s a couple degrees hotter tomorrow than last year, what are you going to do about it? Put on some shorts, is our guess.
The point here is that you should take note of things like climate change. But ultimately you shouldn’t really worry about it that much. Do your part for the environment and your community. But also make a concerted effort to do your part to look after your own interests.
That means if there’s an opportunity to invest in a company that’s going to make the world a greener place, then take it. If that company has something special that will eliminate smog and particulate in the air to save us all, then back it.
Or if there’s a company that’s got the technology to stave off an ice age (and they can prove it) then back it. Whatever your conviction is, back it. And back the investments that will make it happen.
Look, you will be on one side of the fence with all this. You’re optimistic about the future or you’re pessimistic. You’re up or down. Happy or sad. Black or white.
There’s no point fence sitting on this one. And credit to Donald Trump, he’s no fence sitter. He doesn’t believe in it, fine. That’s his prerogative.
Will it lead the US into some kind of environmental and economic disaster? Maybe. But probably not. At least not yet. Not in our lifetime — or the one after, really.
Will it give a few more US companies an opportunity to profit? Well that’s likely. And if it does what would you rather be doing with your time? Worrying about Trump’s withdrawal from the Paris accord? Or investing in the companies in the US that might profit from it?
The thing is, you can worry about certain geopolitical events, or you can get on with things. And by that I mean working on building your own wealth so that, if the world floods in 30 years, you can buy a boat big enough to live on.
Or if the world heats up so much that it’s as hot as Dubai in Iceland, then you can buy an air-conditioning company.
While you shouldn’t sit on the fence, you can play both sides of it. You can make money in a down market. And you can make money in a rising market. History shows us that in any market conditions, there is opportunity to make money. Turmoil, crisis…opportunity.
Of course history is no precursor to future performance. But then again today’s world is nothing like the world of 10, 20, 50 or 100 years ago is it?
You’ve probably heard the phrase, ‘History never repeats, but it often rhymes’. If you’re interested in understanding how you can use historical cycles to help your investing, you really should check out Phil Anderson and his team’s latest research report, here.
Phil’s research doesn’t ignore the radical ways that new technology changes markets — changes the whole world, in fact. And neither should you.
Don’t get distracted
There’s far more opportunity today than there was last century. Access to more markets, access to more companies. Access to new technology. We have more connections, networks, and opportunities than ever before.
But today these ‘cryptocurrencies’ are creating a whole new ecosystem of investment and opportunity. They’re creating digital assets, digital currencies, new start-ups, investable ‘tokens’. They’re seeing performance of 100%, 1,000% in a matter of mere months. And in some cases (like bitcoin) more than 2,000,000% gains from their inception.
That’s the world we live in today. A world where impossible is now possible. Where the very things you’ve been trained by the mass media to worry about aren’t going to hurt you. They’ll just distract you.
Don’t be distracted. Understand what’s going on. Take a stance, have conviction. And always look for ways to profit from it. If you can seize those opportunities, then who cares what Trump does? You’ll be rich enough to do whatever you want.