Just a note about "We see this in oil markets right now: we’re not sure what our stance on the energy sector is, and that’s causing a lot of uncertainty." The policy is part of it, and it's a problem, but it's really only part of the problem. The decisions that are determining our current supply were made 4 or 5 years ago, which was certainly a great time to invest in fossil fuels from a US national policy standpoint.
There are real issues with forecasting demand, especially marginal demand, for fossil fuels on time frames longer than 5 years. How fast will electric cars grow and how will that growth be spread across different markets? Will solar continue to get cheaper and cheaper at anything approaching the rates we have seen in the recent past? New fossil fuel projects have long lead times between investment and return and a lot of companies got burned at the end of the fracking boom, so they may be more hesitant to plow a lot of money into new projects that will produce 4 or 5 years down the road when faced with uncertainty in demand.
I wonder if supply pressures from energy shortages globally and China zero CoVID policies will have us in stagflation for 6 -12 months plus, if so how does that affect the real estate market? Is their any safe haven during that time?
Just a note about "We see this in oil markets right now: we’re not sure what our stance on the energy sector is, and that’s causing a lot of uncertainty." The policy is part of it, and it's a problem, but it's really only part of the problem. The decisions that are determining our current supply were made 4 or 5 years ago, which was certainly a great time to invest in fossil fuels from a US national policy standpoint.
There are real issues with forecasting demand, especially marginal demand, for fossil fuels on time frames longer than 5 years. How fast will electric cars grow and how will that growth be spread across different markets? Will solar continue to get cheaper and cheaper at anything approaching the rates we have seen in the recent past? New fossil fuel projects have long lead times between investment and return and a lot of companies got burned at the end of the fracking boom, so they may be more hesitant to plow a lot of money into new projects that will produce 4 or 5 years down the road when faced with uncertainty in demand.
I wonder if supply pressures from energy shortages globally and China zero CoVID policies will have us in stagflation for 6 -12 months plus, if so how does that affect the real estate market? Is their any safe haven during that time?