The Economics of the Not-Obvious
Before picking stocks, you need to pick industries, which means studying current economic trends - changing customer preferences, politics, geography, climate change, etc. Which industries will thrive in the next five years, and which will flounder? This is already obvious to some, but many fail to take it to the next step: Which of these economic trends are not obvious to most investors ? For example, let's take political momentum towards fighting climate change, which has led stocks related to solar energy and wind energy to soar. Taking the Hipster Investor philosophy, it's no longer a good time to invest in wind and solar, as these stocks are all likely overvalued by now. So how can we take advantage of this trend while avoiding the obvious? For one, wind and solar are highly inconsistent in their energy generation, and so need backup power plants that can startup quickly and be shut down quickly. The only type of plant that fits the bill is natural gas, which is why I now...