Well now, finally large U.S. investors are figuring out that climate change will crash the economy. I'm not sure what took them so long. Today the NY Times published a letter sent by a group of large investors worth a trillion dollars that warn that climate change threatens to crash the economy.
They call for policy changes and interestingly don't bother to reach out to the GOP leadership or Mr. Trump, who says climate change is a hoax, but to Biden.
They included a call to the S.E.C to force companies to disclose the location of their physical assets, such as factories and other facilities. That way, investors can gauge the risks facing those facilities from wildfires, hurricanes or flooding, and push companies to address them. Investors would then be able to choose whether to invest based on that information. So the stock quotes of publicly traded companies who are vulnerable would reflect their climate vulnerability.
They also call for the Federal Reserve to require big banks to include a climate stress factor when they make business loans in order to avoid an economy-wide crash when climate disasters start piling up. This would mean that, for example, if someone is building their auto plant, hotel, or condo complex on the coast where they are vulnerable to climate-related storm surges, they have to factor in climate vulnerability in giving the loan.
I predicted here way back that homeowners would discover they couldn't get insurance coverage and mortgages on coastal properties at some point which in turn means that the flight from the coasts will happen even before the seas actually inundate people's homes. (Incidentally, in a spooky coincidence, there'sa story today about luxury properties falling into the sea in Australia).
Climate activist Bill McKibben has been warning for decades that municipal budgets would be wiped out by climate disasters when bridges and roads are systematically destroyed by storms. He had a plan back then that would have avoided the whole problem, but the fossil fuel industry bought the politicians so nothing was done. Now we just have to get rid of the orange fool and his followers.
Is there anything we can see about what happens to the millions of middle class invested in 401k and stock market with their life savings? If the financial world changes so much in the future, what happens to all the investments so many people have made for their futures?
@bmaaack A vision I had years back about the 2020 crash showed restoration to a humane and healthy financial normal returning in 2028. Many companies will be replaced by new ones whose activities adjust to the new normal that is unfolding. Over the long-term, economic growth will have to be sustainable, i.e., fossil free, or a crash will come that won't recover. When I close my eyes, I see a Wall Street building with a giant wind mill superimposed over it.
Is there anything we can see about what happens to the millions of middle class invested in 401k and stock market with their life savings? If the financial world changes so much in the future, what happens to all the investments so many people have made for their futures?
I wonder about this too since I worked as a teacher for 10 years and have a 401K with Prudential.
If you are scared about your 401k and want to hedge your investment, place half in gold and half in the market. They run opposite of each other so if the market completely crashes, gold will rise and it will even out.
If you are scared about your 401k and want to hedge your investment, place half in gold and half in the market. They run opposite of each other so if the market completely crashes, gold will rise and it will even out.
How do I put half of it in gold? I am new to this.
@charmandernat I would strongly advise you to talk to your 401K administrator or the person/company who does the actual investing before you make any changes. You want to keep yourself diversified (not all in one thing or another or even in two or three things), but you also want to try to stay in relatively safe investments. Depending on your age and the time you have left before you retire, you'll need to decide (with competent advice) how much risk you're willing to tolerate and structure your investments accordingly.
Once you've done that, remember that investing is a long-term game. You might make a lot in a short time, and then lose that and maybe more in a short time as well. However, until you withdraw your money, it's just numbers on a sheet, not real money. You don't actually gain or lose anything unless and until you take your money out of the investment.
What you need to look at is the long term trend. As I said, you'll see daily, weekly, monthly, and even annual gains/losses, so yes, keep an eye on them and watch the trends up or down, but as long as your investments are gaining over the long haul, leave them alone for the most part.
Also remember that any investment person you talk to has a finger in the pie. They get paid to do your investing for you, so they may try to steer you to things that will make money for them, but not necessarily for you. Most reputable investment firms are more careful about that because they have to maintain their reputations, but it's something to keep in the back of your mind at all times.
@charmandernat I would strongly advise you to talk to your 401K administrator or the person/company who does the actual investing before you make any changes. You want to keep yourself diversified (not all in one thing or another or even in two or three things), but you also want to try to stay in relatively safe investments. Depending on your age and the time you have left before you retire, you'll need to decide (with competent advice) how much risk you're willing to tolerate and structure your investments accordingly.
Once you've done that, remember that investing is a long-term game. You might make a lot in a short time, and then lose that and maybe more in a short time as well. However, until you withdraw your money, it's just numbers on a sheet, not real money. You don't actually gain or lose anything unless and until you take your money out of the investment.
What you need to look at is the long term trend. As I said, you'll see daily, weekly, monthly, and even annual gains/losses, so yes, keep an eye on them and watch the trends up or down, but as long as your investments are gaining over the long haul, leave them alone for the most part.
Also remember that any investment person you talk to has a finger in the pie. They get paid to do your investing for you, so they may try to steer you to things that will make money for them, but not necessarily for you. Most reputable investment firms are more careful about that because they have to maintain their reputations, but it's something to keep in the back of your mind at all times.
I am 35 years old so I cannot retire anytime soon. I have an account with Prudential because my community college gave me the 401k.
Tgraf is correct. You should always consult multiple people, if possible, before making a big change. If you do decide to buy gold, you can buy it from any number of gold retailers online, or even on eBay for that matter. Just make sure to check pricing against gold spot price when you buy. There is a small markup over spot in general but you do not want to overpay, as you are buying actual bars/coins that you will have possession of, as opposed to stocks in a portfolio.