Peak Oil Investments Will Contribute to the Development of Alternate Energy

Personal investments based on the concept of Peak Oil will encourage research and development of alternative energy sources while helping individuals prepare for global economic weakness. The article outlines the possible impact of Peak Oil on different asset classes, such as stocks, bonds, and real estate.

Atlanta, GA — Peak Oil can be an overwhelming and depressing topic. Visions of a global oil shortage can spark a defeatist attitude toward our own fate. While there are many ways for an individual to positively react to Peak Oil, using an investment strategy based on Peak Oil is often overlooked.

There are at least two significant reasons for individuals, institutions, corporations, and governments to invest using the concept of Peak Oil as a guide:

R&D: Capital invested in alternative energy companies, as well as traditional oil companies, drives the stock prices of those companies higher. As the stock prices of these companies rise, so does their financial strength and ability to increase research and development activities that are critical to reducing the severity of the impact of Peak Oil. The act of investing in energy stocks, or physical oil via options contracts, indirectly draws attention (people will notice when gas is at $5.00 a gallon) to the problems associated with Peak Oil. As oil prices rise, so will the profile of Peak Oil.

Life goes on: Even in the worst-case scenarios, such as a severe global recession, people will still have to exist, eat, and provide shelter for themselves and their family. Obviously, access to additional financial resources would be helpful in any time of economic downturn or crisis.

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