I'd like to ask a hypothetical question and get your thoughts on it. I have started a separate thread, as I believe it deviates too much from the original post.
Let's assume we believe the people who tell us that the world's oil production will peak in 5-10 years time. This will cause the price of oil to double or triple. Stock markets will suffer hugely and the world economy could go into recession. Energy prices and inflation will rocket. Interest rates will go up, increasing mortgage repayments. People will curtail their car travel because of petrol prices.
If we assume this is true, what would be the best way for an individual to prepare him/herself in the coming years in the following areas (or any other you can think of)? Apart from stocking up on SPAM and beans in the garden shed, that is....
1. Lifestyle
Let's assume we believe the people who tell us that the world's oil production will peak in 5-10 years time. This will cause the price of oil to double or triple. Stock markets will suffer hugely and the world economy could go into recession. Energy prices and inflation will rocket. Interest rates will go up, increasing mortgage repayments. People will curtail their car travel because of petrol prices.
If we assume this is true, what would be the best way for an individual to prepare him/herself in the coming years in the following areas (or any other you can think of)? Apart from stocking up on SPAM and beans in the garden shed, that is....
1. Lifestyle
- Move to city where public transport is more available...?
- Energy-efficient, well-insulated house using solar/wind power where possible.
- Location on public transport route.
- Invest in energy-efficient appliances - A-rated, smaller TV etc.
- Hybrid car, or car with very low consumption. Bicycle instead if feasible.
- Reduce exposure to stock markets over 5 year period (if you expect a sudden big crash down the line) ? Move this money into safer investments...(savings a/c ?)
- Reduce mortgage as quickly as possible in next years in expectation of increased interest rates, or buy smaller house ?
- Invest in alternative energy companies ? Oil companies (will share prices increase because of higher oil price or decrease because of reduced oil quantities) ?