These days, negative news is everywhere. Brexit, Trump, Syria, Terrorist attacks, Monte Di Pasci etc. It is not that hard to feel depressed about the world and the future. As I mentioned earlier on the blog, sometimes it makes sense to follow Charlie Munger’s advice and “invert, always invert”. Therefore I tried to come up with some potential positive and surprising news of how the world could get better in 2017. Some of them are pure fantasy, some might actually happen, who knows ? In any case it was fun to come up with those ideas. “think positive” is clearly not a solution for every problem of the world but sometimes it just helps to change the perspective in order not to fall into the “everything is doomed” trap.
1. Italy has actually turned the corner. NPLs, which have been decreasing since Mid 2106 drop dramatically and are snapped up from investors. BMPS will be nationalized, the rest of the Italian banks privately recapitalized. Building activity soars in Italy but also in Portugal and Spain.
2. Battery technology & Electric Vehicles will make a break through, accelerated growth because of jump in new car sales and build up of infrastructure. Growth easily outpaces decline in traditional cars.
3. Break through for healthy organic food which enables many people to start farming and really make a living out of it. Rural areas get a real boost as people want to move back to the country. People eat more healthy food which lowers the cost for health care.
4. “Robots” will free up capacity from low value creation assembly line jobs to do really meaningful jobs (customer service, integrating refugees, caring for old and sick people, educating children).
5. Refugees create a large number of super innovative startups that contribute meaningful to GDP based on their experience from their home country (do more with less or nothing)
6. The Euro Zone and UK reach an agreement for the Brexit. As a result, UK will keep access to the common market but will pay for the recapitalization of the Greek Banking system. The EU will enlarge the franchise, grant access to the market against cash and will also recapitalize Portugal and Spain.
7. Donald Trump finds out that renewable energy is even better for energy independence (and jobs) than shale oil and gas. He will turbo charge the growth in the sector and will be known as the “Greenest President” in the history of the US. His Children accidentally had bought the majority of Tesla/Solar City just before his announcement. Musk makes so much money from Tesla which he puts into SpaceX and he will start his Mars mission already in early 2018.
8. A powerful and charismatic “Mahdi” appears and declares that peace is the ulitmate goal of Isalm. Terrorist attacks stop, the Middle East stops fighting and an “all around” peace treaty gets signed. Ultra orthodox muslims and Kurds get their own countries. Immediate rebuild of destroyed cities starts, driving growth for a decade.
9. Kim Jong-un in North Korea decides that he prefers a life as team manager of a US NBA team together with Denis Rodman as coach. North and South Korea are peacefully reunited. United Korea will grow by 10% plus for the next 10 years.
10. Donald Trump decides after 10 months that being President is boring and also bad for his Golf handicap. Vice President takes over.
value and opportunity 