The Limits of Growth

The Limits to Growth

In review you now have 5 stocks.  Consolidated Edison Inc. (ED) or another utility, Kraft Foods Inc. (KFT) or another food stock, Eaton Corp (ETN) or another industrial stock, and U.S. Bancorp (USB) or some other financial (Bank) stock of choice.  Last pick was an oil or gas my recommendation was Chevron Corp (CVX) but any oil sector stock would do.  Remember you can own any stock in the sector not the one I recommend.

In a controversial environmental study released in the 70’s at MIT, by a physicist Graham Turner in Smithsonian magazine April 2012.  http://www.smithsonianmag.com/science-nature/Looking-Back-on-the-Limits-of-Growth.html 

The author found that growth cannot go on forever.  There is a limit and resources are not unlimited.  For my next two stock recommendations I am going to use this study to make you money.  In my next posts I am going to recommend you get a non-renewable resource stock and a production of food stock.  So again I have my own sectors slightly different than the professionals.  I believe they offer a valid diversification strategy.  So along with my recommention on an oil stock in the post titled “Oil”, I want you to get other resource supply stocks.



The dark band is the actual vs the estimated graph from 1970 to 2000 as observed.  The modeling is of unchecked economic and population growth with finite resource supplies.  Although it seems logical it is largely dismissed by critics (GOP who always want business-as-usual) as a doomsday prophecy. The scary thing is it is on track today, remember the Bush adminstration and global warming?  Scienciests agree global warming is not if, but when.  Logacally we can’t grow forever, so like Jim Cramer says if we can’t fix it we can profit from it. 

So let’s profit from the limits to growth.  Just because the GOP doesn’t believe in it doesn’t mean it isn’t true, we can’t grow streight up it is as simple as the elementary school science experment of a banana and half a dozen friut flies in a closed jar.  Did you do that in school?  Try it!  The banana can represent avalible resouces, the fruit flies the population or growth your choice, and the jar the closed system of the planet.  At a point the fruit flies die off due to a spoiled environment and pollution.  So in the future bogs I plan to add a two materials stocks, one from the Fertilizers, Agricultural Equipment & Agricultural Chemicals to play the growing human population.  And, a Mining stock to play the growing industrial output and production.