This sprawling Naked Capitalism article says yes, basically because investors don’t consider the long term. But if it were really true that most investors are not aware or not correctly valuing the risk, a small minority of investors should in theory be able to make money on that and bring markets back into equilibrium. Maybe the “long term” is just too long for mortal human investors to consider? But corporations and other institutions like pension funds are not mortal humans. Fossil fuel companies could try to exploit these opportunities to hedge their bets while they continue to cast doubt on the science and technology needed to get out of the mess.

How would an investor exploit other investors’ underestimation of climate risk, if this actually exists? Short-sell companies insuring homes, businesses, and lives in coastal and fire-prone areas? Buy construction and engineering companies that will get our tax money to clean up after disasters? Military and security contractors who build walls and detention camps (a morbid thought, but mass migration driven by climate panic seems likely to hit us at some point). Clean energy? Nuclear energy? It’s hard to guess and time these things – basically comes down to luck, and there are always going to be people with deeper pockets and political influence to keep us small-time investors from getting ahead. Diversifying across asset classes and internationally, and not having all our savings tied up in our houses, still seem like the best options for us little people.