Gas Prices Will Change Everything
May 27th, 2008 by Kevin
Continued increased gas prices and their trickle down effects will change everything - the world economy and more importantly the way we live. Think about the following:
- How far people will be willing to drive on a vacation
- Where people can afford to fly to for vacation
- Where people live - suburbs or cities
- how they will travel when on vacation, and what they will do
- Where people retire
When thinking about offshore investments consider the pros and cons of what increased gas prices will mean. Recently in Nicaragua a fuel/transportation strike stalled the country for about a week. While there were minor disruptions to travelers, there were major impacts to the local people who rely on related industries for their livelihood. On the other hand, with domestic prices on the rise, retirees are starting to look to central America as a place where they can continue to live the American dream on a reduced income. Furthermore, with increased air travel prices and exchange rates, European travel is out of the question for most, but people still want to go on vacation. Mexico and Central America become a much more viable option.
As the world starts to adjust to this change it is important to consider how this will impact different types of investments.
