NEW YORK - After historic floods devastated Midwestern agricultural states this spring, some fund managers are evaluating how climate change will affect the long-term value of companies that make or sell products ranging from tractors to fertilizer.
In November, the U.S. government published a report that found climate change will boost costs in industries including farming and energy production by increasing the frequency and severity of storms. The U.S.-China trade war has also clouded the outlook for U.S. farmers. More extreme weather in the Midwest, for instance, will boost the cost of grains for feed, which will cut margins of egg producers like Cal-Maine Foods Inc, he noted. Barge companies such as Kirby Corp that move commodities down the Mississippi River may have more days that operations are out of service because of flooding, he added.
“If you think the next 10 years will look like the last 10 years you are in a for a rude awakening,” he said.Incorporating the impact of climate change on agricultural stock valuations is something Wall Street analysts from firms including William Blair, Wedbush and R.W. Baird have largely avoided because it is hard to predict the impact on any one quarter or season.
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Manufacturing gone! Agriculture going! What is left for funds to invest? Song & dance? Disney, Netflix & Crap?
Are you still peddling talk about the weather as an alarmist media narrative about some existential threat to all of humanity? How bored is everyone now that life is so good?
U.S. Fund managers have been adjusting agriculture investments ever since there have been fund managers. It's part of their job. As for climate change, it's a monstrous wealth redistribution scam and too many thinking people know it.
Get set for major food shortages!
Wow
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