I was at my dentist in Texas last week, and not one person in the entire office had ever driven on Highway 1 along the CA coast.
I couldn’t believe it, as it is without a doubt the most beautiful drive in the entire country. And yes, I’ve been to all 50 states and have done them all – including Going-to-the-Sun Road in Glacier National Park, the Road to Hana in Maui, the Blue Ridge Parkway, Yosemite National Park, Southern Utah, and pretty much everywhere in the Rockies.
I share that observation because I and two JVM Managers (Andrei and Maddie) recently motorcycled from San Francisco up Highway 1, as I wanted them to appreciate the sheer splendor from a motorcycle – and it did not disappoint.
I was also shocked by what I saw.
Sidebar: I rented BMW 1250 GS motorcycles for the ride because they are so safe and comfortable. The rental shop though substituted Maddie’s BMW for a giant Ducati that required a stepladder to mount, and that even I, with years of experience, did not want to ride. Maddie, however, jumped right on it and rode it like a champ all through the City and along some very challenging roads. Please be impressed with her if you get a chance.
Anyway, I and many others had given San Francisco up for dead because of its seemingly insurmountable homeless problem, crime, commercial real estate woes, and the mass exodus of businesses.
On the day of our motorcycle trip, the weather was flawless (like it so often this time of year) and the City was packed as result – so Apple Maps took us on very circuitous routes to get us out of (from the Mission to the Golden Gate) and back into the City.
What shocked me was this: the City was at its “peak charm” everywhere we went. Everything was clean, cute and as charming as ever – with thousands of people out and about (reminding me of what makes Cities so alluring).
I went to Union Square recently too and had the same experience. According to the internet, foot traffic is back up, AI firms are returning to the city, buildings are getting leased again, public transit ridership is up, and tourism is back.
So what happened?
New leadership was put in place along with new policies – and boom: things improved massively almost overnight.
It is an excellent reminder of how quickly seemingly insurmountable problems can be fixed and how quickly things can change.
So, what else can change?
Mortgage Rate Lockdowns
How about the dreaded “mortgage rate lockdowns” that everyone said would strangle the real estate industry for years, as owners with very low rates would never sell? Well…inventory is coming back, and the dreaded lockdowns are no longer a concern (more on this next week).
What about cheap energy – the lifeblood of every economy and the solution to almost all of our problems? The guest on this recent Shawn Ryan podcast discussed space-based solar technology (that we have now) that could beam nearly free energy to most of the world. In addition, there is a huge surplus of natural gas, a resurgence of nuclear power, and very promising geothermal solutions. So, dirt-cheap energy seems almost inevitable now.
What about America’s insurmountable debt problem? See cheap energy above. It could fuel an AI boom and enough economic growth to help us easily pay off our debt.
So, this is a reminder to never give up hope, given how quickly things can change with new technology and/or leadership.
Highway 1 (The Most Important Point)
But more importantly, if you have never driven on Highway 1, you need to plan a trip. It is not just the sheer beauty you need to see, but also the charming little beach towns, the giant elephant seals, the sea otters, the redwood trees, the oyster bars, and the beaches.
Highway 1 north of San Francisco (where I recently went) is as beautiful as Highway 1 south of the City.
You will, however, have to slow down near Monterey, as there is a giant hole in the Highway that has been there since February of 2024.
Hopefully, California will get new leadership at some point so it can once again fix beautiful highways that fall into oceans…
