Food, water, and the air we breathe.
We take them for granted.
However, by 2055, the world’s population will reach 10 billion. Will we still be able to take these basic requirements for survival for granted then?
The Earth’s resources are limited. While the media and most investors focus on fossil fuel supply and demand, other resources pose greater concern.
No Water, No Life
Life cannot exist without fresh water.
Only 3% of the water on earth is drinkable, and accessing it can be difficult.
Moreover, the rate at which fresh, drinkable water is disappearing is alarming. We’re using it for drinking and to grow our crops, of course. However, in addition, a lot of it is vanishing into space as the Earth heats up.
Many are already feeling the effects of water scarcity. Today, a billion people from the developing world don’t have access to fresh water.
And parts of the developed world could soon join them.
By 2050, six billion people will live in areas suffering water shortages for at least one month per year.
Conflicts over water rights are frequent, particularly in the Middle East and Africa, and scientists believe fresh water shortages will probably cause the next great global disaster.
Water sources are so important that we consider them a public good, so investing in this sector isn’t as straightforward as you might hope. That’s why you should rather consider companies focusing on water conservation, management, and purification products.
I recommend you look at Invesco Water Resources ETF (Nasdaq:PHO). With its 37 holdings, this company should be the first step for anyone looking to invest in the growing fresh water shortage.
Peak Phosphorus Is Only 11 Years Away
Phosphorus is probably the last thing that comes to your mind as a precious resource. However, it’s an essential element plants need to grow, and the most widely used fertilizer in the world.
Estimates show that the Earth’s commercially viable reserves of phosphorus will run out by 2100 at the latest. Meantime, by 2030, we will reach Peak Phosphorus, the point at which global phosphorus production rate will reach its absolute maximum.
Despite being widespread in the Earth’s crust, mining phosphate rock is the only cost-effective method for collecting phosphorus to date. Unfortunately, only a few places with concentrated reserves exist; 70% of which are located in Morocco.
Modern agriculture methods have farmers growing the same crops year after year. This doesn’t allow the soil to regenerate depleted minerals. Farmers’ strategy to address this is to apply more and more artificial fertilizer, in the form of phosphorus, to their fields. As a result, the demand for phosphorus is rising almost twice as fast as the rate of growth of the human population.
This is good news for phosphate miners, as a shortage will result in higher prices.
Investors looking to profit alongside the miners should look at Mosaic Co (NYSE:MOS) and Nutrien Ltd (NYSE:NTR). Both offer exposure to phosphate prices, as well as a diversified portfolio of other fertilizers, and should benefit as the world population continues to expand.
The Number-One Protein Source Of The Future
We all know eating fish is good for your health. Unfortunately, it’s not good for fish’s health.
Over the last couple of decades, commercial fishing has decimated the number of tuna, cod, and many other kinds of fish in our oceans.
Modern fishing is akin to warfare. Commercial fishermen in factory-sized trawlers use sonar, radar, drones, and spotter planes to target schools of fish. They deploy long lines with dozens of hooks and huge nets to catch scores of fish at once… along with turtles, dolphins, and seabirds. Collateral damage.
Armed with these technologies, we can fish farther out at sea and at greater depths, and we can target a wider variety of fish.
As a result, around 31% of the species are overfished, and 58% are fished at the maximum sustainable numbers.
Wild fish simply can’t reproduce fast enough to feed 7.7 billion people. We need a new approach.
Experts agree that aquaculture is the solution, and projections show it will be the primary source of seafood by 2030.
It eliminates the need for grazing and has a lower feed conversion ratio than land-based animal protein, as well as a smaller carbon footprint.
I recently came across a company that is pioneering sustainable aquaculture on a mega-scale. I predict that this group could become one of the largest protein-producing companies in the world.
It also has stable cash flows and an impressive dividend yield north of 5%. I share details with subscribers to my True Retirement Wealth in their current issue.