Should Commodities Investors Worry About Global… Cooling
In most of the world, the 2008-09 winter was the coldest in recent memory.
Snow fell in Baghdad and much of the Middle East. Europe faced crippling snow storms and China had serious winter problems.
The summer has continued to reflect this cooling trend. In the northeast U.S. record lows have been broken on a consistent basis. Boston, for example, has seen the coldest start to a summer in nearly a century.
Is this just a fluke? An ice cube in a rising sea of global warming? Or could this be a new cooling trend that some solar watchers have been warning about?
If it is a trend, commodity investors may be the first to feel the impact.
For commodities, like grain and corn and other related foodstuffs, prices are much more vulnerable to cold weather. Sudden frosts and shorter growing seasons can increase price vulnerability.
If the temperatures contract hard enough, even precious metals could suffer. Demand dwindles and economic activity curtails in cold periods and that can even affect the temperatures of precious metals.
While commodity investors should be aware of the effect of weather on prices, they don’t have to be crippled by them. Volatility is good for the trader, especially traders who are prepared with leading-edge technology and non-emotional investing strategies.
No matter what the temperature is outside, traders should keep cool.
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- The Other Secret… And The Proof Of Global Meme
- The Difference Between A Good Speculator And A Bad Speculator
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