green_cheeks

In Light of Peak Oil, Financial Diversification Is a Bad Idea

Another insight I am sure most of have in common, is worth repeating. CHEAP OIL IS THE SOURCE OF ALL THINGS IN OUR ECONOMY. CHEAP AS OPPOSED TO EXPENSIVE OIL. EXPENSIVE OIL IS THE END OF OUR ECONOMY AS WE KNOW IT.

In Light of Peak Oil, Financial Diversification Is a Bad Idea

My predictions....and these are primarily based on what I refer to as "peaking oil" as opposed to peak oil. My hunch about peaking oil is based on the various view points that I have read or heard from people close to the action including the contrary commentary too. I just don't find the contrary viewpoints to peaking oil to be all that convincing.

The price of oil will continue to ascend it's price at a steady acceleration due to the lack of alternatives for current users/addicts.
Due to the high price of oil and it's direct influence on our economic reality, our spending will shift from wants to needs in a progressively gradual manner(needs being food and shelter (rent, mortgage, and/or comfort).... most of us have no need for new clothes). It will be more important to feel somewhat warm and cozy in the winter and somewhat cool in the summer, at least more important than the pleasure we derive from our eyes and hears and all industries that revolve around them. We will still have the American appetite. I know few people that will sacrifice their favorite carbon input loaded diet for much else, me included with my avocados, California salad greens, coconuts and other tropical fruits. We will no longer be able to have our cake and eat it too, in a sense. There will always be the super rich with the ability to buy whatever they please, but the other 95% of us will be choosing to heat or cool our homes moderately, eat our same or similar diet without a lot of changes. Nothing is as close to a person's heart both literally and figuratively as their stomach. We have had a economy that has serving our neurosis and our needs. Well, when push comes to shove, our neurotic selves give way to the needs of the body.
It thus my belief that our economy could focus on consumer needs for a while and that the next bubble will include all of the industries that are required for the production, supply, and distribution of these items, thus oil, ag, natural gas, nuclear, wind, solar, rail delivery as opposed to truck, etc. Some could argue that we have seen a bubble already forming in these industries but then again, it is not like people are pulling ALL of their money out of Apple at this point to invest in our more immediate and basic industries. The market seems to be fairly diversified still, a diversification that resembles the idea that cheap oil will perpetuate into the unknown future.
So I guess my little ramble is this, we have had an economy predicated on cheap oil for a long time and it will correct itself. It is as we have been taking out a loan that is now due. The way it will be paid off is through a more subsistence like lifestyle. It is also my belief that commodities will be the most stable currency. The people that get in early are going to see those investments grow exponentially, even if one starts today.
This is the way Warren Buffet thinks. Ken Heebner, the other, virtually unknown Wall Street maverick (currently on the cover of Fortunre) also is on this track. Both these investors are basic needs investors and virtually no tech to boot.
One other thing I would like to address is the "it is different this time" theme that sometime props up. Well, it actually could be different this time. We now have 6 billion people fighting for dwindling resources.
Plus, even if oil wasn't peaking, there will still be caps on emissions coming soon enough with serious financial implications on our economy

Peak Oil Stocks for the Future

Has anyone visited lifeaftertheoilcrash.c...? Pretty interesting. I am not an expert in oil reserves or peak oil, but what I read was mind blowing, in a good sense. At first it was depressing to read about the doom and gloom but his idea of a possible return to a forgotten lifestyle close to the land made sense despite it's "radical-ness".
It seems that much of our current oil use is based on wants rather than needs. I guess that a lot the wants create and sustain jobs, promote the economy, and on and on. Yet things could always be simpler and may turn out that way.

Peak Oil Stocks for the Future

Hello

Peak Oil Stocks for the Future

afjak