Record climate risks. Record asset prices. If we’re doomed, how so?
We need a 40 per cent or so reduction by the end of this decade to keep global temperatures in check. The UN warned that “national climate plans fall miles short of what’s needed to stop global heating from crippling every economy”.
The S&P 500, Nasdaq and Dow Jones in the US again reached all-time highs this week, before Halloween spooked them.
Is it ever right to buy equities at all-time highs? It certainly feels wrong. Finance theory would concur. Expected returns mathematically drop when prices rise.
And vice versa, of course. Therefore, I’d love the S&P 500 to crash.
I needn’t worry, though. It turns out that buying at all-time highs isn’t stupid in the least.
One reason why is obvious: if equities generally go up, which they do, record levels will occur often.
Stuart Kirk FT 1 November 2024
https://www.ft.com/content/57c39d18-a133-4436-8f99-e6bf9825a5e8
Kommentarer