Extreme weather is hitting all regions of the globe with increasing severity. Despite the damage that can and will be caused from these extreme weather events, certain industries will nevertheless benefit and certain industries will be hurt. It is the purpose of this book to identify and evaluate the sectors, industries, companies, and more specifically the particular stocks, bonds, and futures that will be the winners and losers as extreme weather events continue to impact the Earth. Every investment idea in this book will work under the current, global climate condition. To the extent that these already existent extreme weather events get worse via global climate change, the more lucrative the investment ideas in this book become. The specialized definition of global warming as it relates to extreme weather investing is described here.
Introduction:
We have all been made very aware that the average global temperature will rise as a result of global warming. When things like gasoline, natural gas, and oil burn, they produce CO2 (carbon dioxide), among other green-house gases. The CO2 accumulates in the Earth’s atmosphere, producing a greenhouse effect on the Earth, thus driving up the average temperature of both the air and the oceans over time. However, that is only half the story. The burning of gasoline, natural gas, and oil produces not only CO2 but also water. So we are steadily also increasing the quantity of water into the system that never existed before. In addition, as the average air temperature in the atmosphere rises, the more water the air is capable of holding.
We will refer to this as global watering. This global watering, in combination with the increasing average temperature, global warming, will have the effect of causing global climate change. This could mean more rain, more snow, more ice, more droughts, and more severe weather such as hurricanes and tornadoes. It could even cause geographic shifts in weather patterns that are completely new to particular regions of the world. These effects are cumulative and will build over time and therefore do not represent a cycle where things return back to normal. The rapid growth of the emerging regions of the world, including China and India, will exacerbate these effects. It is the persistence of this pattern that provides the basis for this book.
The investment ideas in this book are geared for investors of all skill levels from the beginner right through to the professional investor. It is written in very straightforward and simple language, thus making the concepts and ideas very easy to understand. The chapters are split out by the various types of extreme weather events to help the reader rapidly locate the applicable, relevant investment ideas during extreme weather events. The detailed index also provides assistance.
Most importantly,Extreme Weather and The Financial Markets is completely full of action plan tables that point out the specific company and commodity “biggest winners” and “biggest losers” resulting from extreme weather events occurring any-where in the world! The inclusion of real-life examples and specific investing rules for the extreme weather–based investor, as well as simplified tutorials on the basics of stock, bond, and futures market investing, all provide the reader with the necessary tools to make money on the extensive list of investment ideas discussed in this book.
Contents:
- Commodities and Their Current Stories
- Where to Invest: Stocks, Bonds, or Futures?
- Global Climate Shock Number One: Excess Snow and Ice
- Global Climate Shock Number Two: Flooding Mines
- Global Climate Shock Number Three: Farmland Droughts, Floods, and Frost
- Global Climate Shock Number Four: Hurricanes and Tornadoes
- Global Climate Shock Number Five: Drought-Induced Timberland Fires
- Real-Life Examples: Execution, Results, and Timing
- Playing Both Sides of the Coin
- Basic Principles of Commodity Investing
- Opportunities in the Bond Market
- Opportunities in the Foreign Currency Exchange Market
- Basic Principles of Futures Market Investing
Extreme Weather and The Financial Markets: Opportunities in Commodities and Futures By Lawrence J. Oxley pdf
