Investing in Silver Linings

Smart investors look for the clouds so they can spot the silver linings.

Take for example the problem of climate change and rising seas.

Image from (1)

One can argue over weather climate change is man made or not, but smart investors let others waste their time bickering and look for the silver lining instead.  Wise investors ask, “if global warming is a fact, what can I do about it?”.

Global warming will create innumerable problems.  One huge concern is America’s population crowded along the coast.  In Florida for example porous bedrock, and tropical storms put about 1.3 million homes at risk from storm surges.  Florida, has the most of any state by far (nearly half the risk nationwide).  A recent Florida Atlantic University study estimated that just 6 more inches of sea level rise — very plausible within two decades — would cripple about half of South Florida’s flood control capacity.

What’s the silver lining?  Florida spacious high ground.  I am taking advantage of this myself, having invested in a Mt. Dora (the highest town in Florida) home rental business.  The sun still shines in Florida.  State income tax is still non existent. People are still pouring in.  I believe they will continue to do so, but they will need homes in higher elevations.  I want the people do that.

Look for areas of flooding and invest in high ground near by.  You can check how vulnerable any area in the US is at (2).

This website has an analysis that factors in local sea level rise projections, storm-surge patterns and tides, as well as local topography and patterns of development.  They have mapped and evaluated risk in 3,000 towns, cities and counties across the lower 48 states, including South Florida, and have a free, ZIP code-searchable interactive map with neighborhood views and risk information at SurgingSeas interactive map (3).

For example here is a shot I took from this site of Tampa now.

and the flooding risk if the temperature rise two degrees C.

Sea level rise is already increasing flood threats everywhere.  It’s set to become an even greater problem much sooner than most people expect.  This is a huge cloud over much of the world and the problem creates many silver linings.


(1) US cities lag in race against rising seas

(2) interactive map

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