Dear Reader,

I understand this is a contentious topic…

You might agree with me, or you may think I’m an idiot.

But I know enough about markets and economics to know we’re on a disastrous path.

The fact is, Australia is one of the most richly endowed nations on Earth when it comes to energy.

But we are getting to the point where we’ll sell this energy to other nations (who understand the need to keep energy costs low) while investing the proceeds to deliver a high-cost energy future for us.

That means we’ll suffer a relative decline in living standards in the decades to come.

This is the first energy transition in history that will come with higher energy costs. That’s because politicians are mandating it. They’re putting a timeline on the transition and technology won’t be able to deliver it on time.

But let’s not question the politicians! There’s no room in this conversation for naysayers!

Or for realists, evidently.

I’m sorry, but the absolute ignorance of those driving this transition is astounding.

And it’s going to result in a lower standard of living for you, your kids, and/or your grandkids in the years to come.

I really hope I’m wrong.

I hope that there is some technological breakthrough that can generate low-cost, reliable energy with zero emissions.

I doubt it though.

Here’s why…and what you can do to prepare your investments.

Sincerely,

Greg Canavan,
Editorial Director, Fat Tail Investment Research