In mid December a very large tornado that was 200 miles long touch ground on a number of places leaving damaged buildings and lives in the process. Deanne Criswell the head of FEMA has called the tornado the new normal because of climate change. We all understand the destruction tornadoes cause and if you need to see a movie Twister staring Helen Hunt is a good indication of the beauty and destruction of a tornado. The issue is at one point there was a season for tornadoes and people knew and now the tornadoes can come anytime of the year.
In an article by Richa Naidu of Reuters, Amazon has distribution plants around the US and the world and they move goods and services. If you look at map of St. Louis, the Mississippi divides the city if you live on the west, you are in Missouri. If you live east of the river you are in Illinois. One of the suburbs of St. Louis is Edwardsville, Illinois and Amazon has a 500,000 square foot facility and there is a 1.3 million square foot in Republic, Missouri which is near Springfield. The company will continue to operate efficiently. The plant in Edwardsville had its roof ripped off and the concrete walls to collapse. Amazon responded correctly worried about the people first. Then supports when the people are safe and then rebuild.
Linking to dividend paying stocks, climate change is going to affect every company in your investment because the water, the wind, the soil, the micro climate is changing until such time it stabilizes. Most of us are attached to a piece of land, either we bought, grew up near the land and have memories of it. Climate change means people will have to leave and companies have to make decisions to relocate to areas where there is greater stability. There maybe calls to rebuild, but is that always the correct decision. Fortunately with large companies that can make profits, there are going to be alternatives and other choices in order to continue to function. As an investor you like that, as an individual you will likely be conflicted, which is okay.
There are more questions than answers, till the next time – to raising questions.