Don’t wait for the oil to run dry

Today’s Exponential Investor is about two historic trends meeting like two waves at the beach. Specifically the point at which the two waves slap into each other and send foam flying vertically.

In this case, it could be your net wealth that goes vertical. If you figure out exactly where the two waves will meet in advance. Or let us do it for you. More on that below. First, here are my two waves of history…

We didn’t run out of stone in the Stone Age, bronze in the Bronze Age, gold in the Golden Age, paint in the Renaissance or coal during the Industrial Revolution. We’re certainly not running out of oil or gas.

The real question is always, what won’t we run out of next? What will we turn to instead of oil and gas?

And the second wave…

It’s strange how the problems facing the world seem to solve themselves with corresponding problems. Mountains of horse poo piling up in cities were replaced with exhaust fumes floating through them. Overpopulation fears were followed by demographic decline. Global cooling was replaced with global warming. Oil shortages were followed by oil gluts.

What new problem might replace our ills today?

If you can combine these two questions and find one answer to them both, you’re in for investor profits. Just think of how much wealth each wave of innovation created. And how much money people made and lost from dealing with the consequences of change.

Know any blacksmiths? Been to the coopers lately? Getting these things wrong can be disastrous financially.

Demographics are a particularly interesting change well underway. Food shortages and overpopulation were commonly accepted for the future. Now we’re worried about the opposite – food waste, emissions from too much meat and population decline.

We’ve never had the type of demographic decline we’re facing. Only Japan experienced it. And nobody seems to take the prospect of falling stockmarkets and property markets for decades seriously here in Britain.

I’m still nervous about buying a flat or a house anywhere in the world. In places that have seen population decline, house prices plunged. We’re going to see that population decline in the West soon, so…

Only urbanisation might manage to offset the trend. Hence buying in London, which I’m still trying to do…

But there are other factors at play in the property market. Other changes that are afoot. Especially because of tech.

Before the invention of lifts, the lower floors of high-rise buildings were more sought after. Having to go up stairs made higher flats cheaper. This reversed as lifts and views became fashionable. An investor could’ve profited handsomely.

But I think that’s about to reverse once more as the noise at street level plunges in cities with electric cars. Living close to the street could become favoured again. Unless you like standing in lifts. 

Will carparks matter in ten years? Will driving licences?

With the launch of Virgin Galactic on the stockmarket, investors can even invest in space more directly than ever before. Having just spent a weekend in Nice with a stomach that felt like it was in freefall, I’m not sure why anyone would want to go up there. But plenty of people do.

And if we do go up there, what else will become possible? Bloomberg reckons the first trillionaire will make their money answering that one.  

But you probably want to hear about the power source which will replace oil, right? That’s the big one for the next decade. It’s where the two big waves of our time smack into each other. Climate change and energy.

My friend James Allen reckons he’s discovered what’ll replace oil. An energy source that’ll be bigger than North Sea oil and a lot cleaner.

But it’s not entirely problem free. Making it is still tough. Although one company is well on its way to solving that. Which is how James is positioning his readers to profit from the boom.

The underlying problem with all energy isn’t so much the energy itself, but the storage, generation, transmission, waste and more. The logistics around energy, you might say.

Because of this, the fuel source used to power your car is probably not the ideal fuel source for powering your home. Perhaps even not your narrowboat.

Most predictions are therefore about a future of mixed energy. But that’s not very helpful for investors, is it? It’s the sort of vague ending you expect to read about in an inflight magazine.

Well, we don’t stop there at Southbank Investment Research. Which brings me to what gives James’ discovery its edge. We wouldn’t have to fiddle about with our infrastructure much to make it work.

In fact, many consumers of the energy would hardly notice the difference. And much of our infrastructure was actually built for this energy source in the first place.

That’s why I’m backing James’ predictions to come true even faster than he expects. And anyone looking to get their money in is running short on time.

Until next time,


Nick Hubble
Editor, Southbank Investment Research

Category: Technology

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