Texas Blackouts: Will Investors Learn The Right Lessons This Time?

Texas Blackouts: Will Investors Learn The Right Lessons This Time?

The severe cold snap in Texas and elsewhere is creating a dangerous situation. Speaking to family members in Houston and elsewhere, I hear first-hand stories of residents who've lacked power or heat for over a day, in extreme cold, and water supplies shut off. Forecasted warmer weather by the end of the week can't come soon enough.

And of course, the bad takes are coming in fast. I've seen people state that this extreme but temporary cold snap proves that climate change is actually an "invented crisis.“ Only slightly less obtuse, the Wall Street Journal Editorial Board has already (and predictably) used this episode to argue that the power shortages in Texas "show the folly of eliminating natural gas - and coal.“ Blaming the frozen wind turbines for the shortages, of course. Because renewables are unreliable.

These are foolish takes that would be dangerous for investors to pay any attention to.

First of all, "global warming“ should probably be called "global weirding“. The changing climate is bringing more extreme weather of all types. Scientists are currently thinking that this is due to a destabilized jet stream and subsequent weather effects. But the upshot is, investors would be wise to be thinking about extreme