Did you notice the stock market rising sharply after President Trump announced he would pull out of the Paris Climate Accord and – according to CNN – destroy the entire planet? Markets are irrational, but still, it’s hard to reconcile a decision to destroy civilization with a rise in investor confidence.
What should I make of the fact so many citizens say global warming is an existential danger while the people who have money are (apparently) betting against it? How does that make sense?
One way it makes sense is that markets move for lots of different reasons. But in my experience, a sharp move in the markets timed to a political action is like an instant vote of thumbs-up or thumbs-down on the decision. Apparently, leaving the Paris Accord was a thumbs-up for investors.
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