The scarcity of resources on our planet is on the rise, according to Bank of America.
“We will need two times Earth's resources to keep up with the current usage rate by 2030,” the bank’s analysts wrote in a commentary.
“Today less than 1% of the planet's water is fit for human use, and we could run out of freshwater by 2040. Moreover, key metals like lithium and nickel could reach structural deficit as soon as 2024, and we could reach peak phosphorus by 2030, which would exacerbate food scarcity.”
The problem isn’t just natural resources, the BofA analysts said. “We are also facing scarcity of human capital and technology,” they said.
“We believe the current global resource supply versus demand imbalance is underpinned by structural scarcity and will only get worse.”
BofA came up with a list of stocks that benefit from 10 different areas of scarcity. Those 10 themes and some of the stocks include:
· Water: Essential Utilities (WTRG) , which operates utilities that provide water.
· Biodiversity and air: Weyerhaeuser (WY), a timberland owner.
· Rare earths and metals: Lynas Rare Earths (LYSCF) , an Australian rare earth mineral miner.
· Farming and agriculture: Mosaic (MOS), a phosphate and potash producer.
· Waste Disposal: Origin Materials (ORGN) , which converts the carbon found in biomass into useful materials.
· Processing power: KLA Corp. (KLAC), a semiconductor equipment maker.
· Health and wellness: Teladoc (TDOC), an online healthcare service.
· Skills and education: Udemy (UDMY) , an open online course provider.
· Youth: Progyny (PGNY) , a fertility benefit management company.
· Time: Apple (AAPL), the consumer electronic product giant.
