Putin’s Invasion Reminds Us That We Live in a Finite World

GMO

Jeremy Grantham

Research

4 Pages

GMO’s Jeremy Grantham uses the invasion of Ukraine as a lens on long running constraints in energy, metals and other natural resources. He argues that decades of underinvestment, climate pressures and geopolitical conflict reinforce a structural backdrop where resource scarcity is a recurring feature rather than a passing shock.

Date Published: April 2022

Key Takeaways

Finite resources: Commodity supply is ultimately constrained by geology, investment cycles and environmental limits, even when prices temporarily fall.
Underinvestment theme: Long periods of weak capital spending in resource sectors can set the stage for prolonged tightness and price spikes.
Portfolio implications: Exposure to resource producers and related real assets can help balance portfolios in more inflationary environments.
VIEW FULL REPORT

Join our newsletter to have all of this content + Exclusive Newsletter Bonus Content delivered to your inbox every week

Related Content

Market Outlooks
2026 U.S. Real Estate Market Outlook
Feb 2026
Global Macroeconomics
The Macro Implications of the AI Capex Boom
Feb 2026
Global Macroeconomics
Demand Shocks as Technology Shocks
Jan 2026

The information contained in this communication is of a general nature for informational purposes only, and does not constitute financial, investment, tax or legal advice. The information contained within this communication reflects the opinions of those referenced herein, and do not reflect the opinions of The Idea Farm, L.P. and its affiliates. Such opinions expressed herein are as of the date of production and are subject to change at any time without notice due to various factors, including changing market conditions or tax laws. Where data or information prepared by third parties is presented, no representation, warranty, or undertaking, expressed or implied, is given to the accuracy or completeness of such information by The Idea Farm, L.P. or any other person. While such sources are believed to be reliable, The Idea Farm, L.P. does not assume any responsibility for the accuracy or completeness of such information and does not undertake any obligation to update the information contained herein as of any future date. Any links to third party websites are offered only for use at your own discretion. The Idea Farm L.P., and its affiliates, are separate and unaffiliated from any third parties listed herein and are not responsible for their products, services, policies or the content of their website. All investments are subject to varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy or product referenced directly or indirectly in this communication will be profitable, perform equally to any corresponding indicated historical performance level(s), or be suitable for your portfolio. Past performance is not an indicator of future results.

Scroll to Top