I have posted Entry #494 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called The Stubborn Irrationality of the Market for Beachfront Property.
Juicy Excerpt: Leave aside the question of whether the risks of climate change are over-hyped. That shouldn’t matter too much when it comes to the pricing of assets. If climate change is perceived as real (and it is certainly perceived to be more of a problem that it was perceived to be over 20 years ago), that perception should cause the prices of assets affected by climate change to fall. Yet that clearly has not happened in the case of beachfront property. Could it be that investors are not as rational as the Buy-and-Holders make them out to be?
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