The Rockefellers will abandon their oil investments and advice others to do the same. It’s history in the making. The movement is an indicator of the next economic collapse: the burst of the carbon bubble.
Five years, that’s how much time it will take until they shift all of their 860 million dollars to alternative investments, including sustainable energy. Seventy foundations are joining them, for a total of 4.2 billion dollars. Some moral arguments hover along their reasoning but it’s rooted in the idea that “the market is increasingly risky”.
I have little knowledge of the financial impact this will have on the oil market, but it’s probably not that much. What I do understand is the psychological impact this will have on other oil investors. A financial giant has just moved to the other camp.
Allow me to throw some oil on this fire. What will happen with the oil prices when other investors, now scared, start backing off? What happened to the house prices in the US in 2006? What happened to tulip prices in 1637? They collapsed. Now, I’m not saying that this will happen tomorrow, but there is no clearer signal that a ship will sink, than the first rats that abandon it.
Are you paying a pension fund? Do you know where it has invested most of its money? If you don’t, then it’s probably in oil. What happens if the tanker sinks? Bye bye, “security”. Would you like that? No? Well, then maybe now is the time to sell your investments and put them where the Rockerfellers do?
I’m just saying…