On: Why Are Developers Still Pouring Billions into Wat...

[sulam]

Before you short, read the Big Short and imagine yourself as Michael Burry. Very often you can be short, right, and lose your pants because markets are slow to recognize things that they are paid to ignore.

[finnh → sulam]

Yup. The markets can be irrational longer than you can be solvent. But there must be some arbitrage with derivatives or something, right? =)

[maxerickson → finnh]

You could go long on post sea level rise oceanfront properties.

There's probably a few places where a narrow strip of land has enough of the right slope to be a win for quite a range of sea level increases.

[pixl97 → maxerickson]

And then some idiot will scam the taxpayers in to building a large seawall miles out from your location, leaving you high, dry, and broke.

[maxerickson → pixl97]

cjlars already brought up a similar strategy with less sensitivity to sea level changes and less sensitivity to interventions.

Maybe the best climate change hedge is investing in low carbon power production. (incrementally) Good for the climate, benefits if things go worse than expected.

[acchow → finnh]

No, that's exactly the problem. If you're betting on the market's irrationality fixing itself, you better be able to weather the storm of however long that takes.

[bronson → sulam]

Very true. And the Army Corps of Engineers might decide to build some levees and pumping stations, delaying the reckoning indefinitely.

[yardie → bronson]

The sea water is coming up through the ground. It's not pouring over a dike.