There are very clear paths of transmission from natural disasters to economic disasters.

bantam inc jack duval climate change risk - san francisco earthquake and fire of 1906

San Francisco after the earthquake and fire of 1906.

Although there are many examples of how environmental shocks have affected local communities, there are fewer examples of how these shocks are transmitted to the macro economy. One of the clearest examples of an environmental shock leading to profound global instability is from the 1906 San Francisco earthquake.

Chart One: Timeline of the San Francisco Earthquake and Subsequent Financial Panic[1]   On April 18, 1906, San Francisco was hit with an 8.3 magnitude earthquake.  While the earthquake caused many buildings to collapse, it was the subsequent fires that did the most damage.  By the time the fires had burned out,…

While climate shocks tend to get the headlines, changes in climate trends are more damaging. 

bantam inc jack duval multi-family office - environmental risks hurricane michael

This is what a correlated portfolio looks like under environmental risk.

Environmental risk is rising.  As I write this, Hurricane Michael has just laid waste to a 200-mile swath of the Florida panhandle. Environmental Risks - The UN Report On October 8, 2018, the UN Intergovernmental Panel on Climate Change (“UNIPCC”)  issued a report which was commissioned at

the December 2015 Paris Agreement.  The objective of the report was the evaluate the effects of global warming of 1.5 degrees above pre-industrial levels.  The report was prepared by 91 authors and review editors from 40 countries and cites more than 6,000 scientific references.[1] The UNIPCC press release tell us what is already…