Sunday, September 15, 2019

Genetically engineered honeybees: Not the dumbest idea ever, but close to it

In the wake of widespread declines in bee populations, farmers and beekeepers are wondering who exactly is going to pollinate that third of the world's food crops which require pollination. The declines have been attributed to pesticides, parasites and climate change.

In Europe one response has been to phase out a class of pesticides called neonicotinoids. The phase-out has coincided with a revival of bee populations. But pesticides are clearly not the only factor affecting bee health.

Another response has been to consider building a better bee. Enter the geneticists. Why not genetically engineer honeybees to resist those things which are undermining their health?

Sunday, September 08, 2019

Oil prices and the coming financial 'Ice Age'

Albert Edwards turned bearish on stocks back in 1996—well, not exactly bearish, but cautious. He recommended to clients that they overweight long-term, high-quality bonds and therefore underweight stocks in their portfolios. It turns out that clients who followed his advice fared not quite as well as those 100 percent invested in stocks but also took far less risk. Edwards believes that events that are currently unfolding will actually vindicate his approach.

Although Edwards never mentions energy as central to his thinking, I believe that energy and oil, in particular, are related to his views. I'll develop this later, but first more on Edwards.

Edwards is a long-time financial strategist for the French investment bank and financial services giant Société Générale. He has an investment thesis that arose from the experience of Japan in the 1980s. He calls it the "Ice Age" thesis. It amounts to this: Gigantic debts that built up during Japan's boom in the 1980s led to exceptionally sluggish economic growth after the Japanese stock market bust and finally to deflation and ultra-low interest rates.

Sunday, September 01, 2019

Taking a holiday break - no post this week

I'm taking a short break from posting this week to enjoy the holiday. I expect to post again on Sunday, September 8.