Wall Street Journal (October 30)
Al Gore warns a carbon asset bubble “is still growing because most market participants are mistakenly treating carbon risk as an uncertainty, and are thus failing to incorporate it in investment analyses. By overlooking a known material-risk factor, investors are exposing their portfolios to an externality that should be integrated into the capital allocation process.” If we are to avoid catastrophic levels of global warming, many fossil fuel reserves will ultimately end up as stranded carbon assets. “The transition to a low carbon future will revolutionize the global economy and present significant opportunities for superior investment returns. However, investors must also acknowledge that carbon risk is real and growing. Inaction is no longer prudent.”
Tags: Al Gore, Capital, Carbon assets, Carbon risk, Fossil fuel, Global economy, Global warming, Investment, Investors, Material-risk factor, Opportunities, Returns
Los Angeles Times (October 28)
“Policymakers are clear about their bond-buying goal, but the Street isn’t listening.” Current Federal Reserve Chairman Ben S. Bernanke stated publicly that quantitative easing would continue until unemployment falls to 6.5%. “If we generate 200,000 new jobs every month, tapering starts in November 2016. If we see an average of only 148,000 new jobs each month, we won’t ever see Fed tapering…. Tapering is still a long way off.”
Tags: Bernanke, Bond-buying, Fed, Jobs, Policymakers, Quantitative easing, Tapering, Unemployment, Wall Street
