Read this if you worry about Global Warming
Posted: Fri Feb 01, 2019 2:31 pm
This is from my favorite and most accurate natural resource newsletter.
Goehring & Rozencwajg
Natural Resource Market Commentary
"Because of excellent global weather conditions over the last five years, the world has enjoyed rising
yields and record breaking harvests (except for the North American drought in 2012). However,
because of changing meteorological cycles, we believe that global weather conditions are about to
become much more challenging as we progress into next decade. Although quite controversial,
evidence is emerging that we will see a long period of reduced sun-spot activity that will produce
global weather conditions that could disrupt the near uninterrupted progression of ever-increasing
harvests. In fact, if history is any guide, it’s highly probable we could see multiple years of extreme
adverse growing conditions in the next 10 years. Given the incredibly strong growth in global grain
demand in the last 10 years, any crop disruption could have a huge upward impact on grain prices.
Next quarter’s letter will discuss at length the upcoming change in sunspot cycles that seems to be
taking place as we write. Sunspot activity peaked back in 2014 and has been in rapid decline in the
last several years. Increasing amounts of data suggest that we are entering a period called a Grand
Solar Cycle Minimum. If this turns out to be true, we should expect global temperatures to cool
in the coming decade and for disruptive weather patterns to become more numerous and severe.
The ever-increasing “bin-busting” harvests, so common-place over the last 10 years, will come to
end. Because effects from changing weather patterns could very well make themselves felt in the
2019 North American hemisphere growing season, we believe the corrective trading pattern of
grain prices over the last several years will be resolved to the upside, and we continue to believe
investors should have exposure to agricultural-related equities."
Whenever someone preaches to you about the terrible impact of Global Warming, reminded then that the impact of Global Cooling is ten times worse.
Goehring & Rozencwajg
Natural Resource Market Commentary
"Because of excellent global weather conditions over the last five years, the world has enjoyed rising
yields and record breaking harvests (except for the North American drought in 2012). However,
because of changing meteorological cycles, we believe that global weather conditions are about to
become much more challenging as we progress into next decade. Although quite controversial,
evidence is emerging that we will see a long period of reduced sun-spot activity that will produce
global weather conditions that could disrupt the near uninterrupted progression of ever-increasing
harvests. In fact, if history is any guide, it’s highly probable we could see multiple years of extreme
adverse growing conditions in the next 10 years. Given the incredibly strong growth in global grain
demand in the last 10 years, any crop disruption could have a huge upward impact on grain prices.
Next quarter’s letter will discuss at length the upcoming change in sunspot cycles that seems to be
taking place as we write. Sunspot activity peaked back in 2014 and has been in rapid decline in the
last several years. Increasing amounts of data suggest that we are entering a period called a Grand
Solar Cycle Minimum. If this turns out to be true, we should expect global temperatures to cool
in the coming decade and for disruptive weather patterns to become more numerous and severe.
The ever-increasing “bin-busting” harvests, so common-place over the last 10 years, will come to
end. Because effects from changing weather patterns could very well make themselves felt in the
2019 North American hemisphere growing season, we believe the corrective trading pattern of
grain prices over the last several years will be resolved to the upside, and we continue to believe
investors should have exposure to agricultural-related equities."
Whenever someone preaches to you about the terrible impact of Global Warming, reminded then that the impact of Global Cooling is ten times worse.