Greta. Get used to more of her

Chad Slater

Ellerston Capital

There’s a pre-Greta world and a post-Greta world. In the post-Greta world, 11-year-old trick-or-treaters now knock on my door with plaited hair for Halloween. Whilst a cohort of some would prefer to see this a ghoulish trick, I’m sad to say to expect more of them in 2020.

Irrespectively of any opinions about Greta, she has changed the debate. 2019 was the year it went mainstream, with “Climate Change” searches finally passing Game of Thrones.

2020 could be the “breakout year” as there is a US Presidential Election campaign that will see many more millennials as a portion of the voting population, as 2019 was the year that Millennials passed the Baby Boomers in adult cohort size in the USA.

If there’s one thing politicians are keenly aware of, it is their own self-interest. And self-interest here involves getting re-elected. With the raging California fires, a majority of Americans now see climate change as an issue regardless of voting preferences.

So, coming into 2020, we have a major political event being both a Presidential election but also Upper and Lower House elections, combined with a change in the mix of voters, combined with changing views that have gone somewhat un-noticed. This to me is a set-up that will seem obvious in hindsight” when you see more and more initiatives in the USA focused on Climate action.

What does it mean for your portfolio? More funding for Green energy; at the margin, less demand for the resources that Australia (the USA isn’t a large marginal user, it’s China); and perhaps an injection of optimism for your children. 

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This wire is part of the ‘One thing investors can’t ignore in 2020’ series. To download the full ebook please click here

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Chad Slater
Chad Slater
Co Head Global Equities (ex-Asia)
Ellerston Capital

Chad co-founded Morphic Asset Management in 2012. As a stock picker Chad is also a generalist but has strong regional knowledge of Europe and the Americas. He has also been awarded the CFA Charter.

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