New working paper by EDHEC Risk's Rebonato et al. looks into physical #climaterisk and finds
Equities may be overvalued by up to 40%
"Current valuations appear to imply either a very strong and effective abatement action, or that climate change will have a negligible effect on economic output"...
I am not shocked.
In fact, I will put my money on it being at or beyond the higher end of the range.
People just don’t understand how far we already are, let alone how far we are rapidly heading, outside the normal climatic operating range of human society and its economy.
