Saturday 20 November 2010

Economic Nonsense

There's an article in a recent New Scientist indicating that investors are pricing alternative energy stocks at a level suggesting that they don't think renewables will replace fossils for another 130-odd years. But no-one lives for 130 years so why would any investment decision be taken on that basis? I can't think of any stocks that are that illiquid so markets would move much earlier and quicker. This is a case of an economic model departing from reality and wasting good publishing space.

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