When it comes to the stock market, one of the biggest drivers (or takers) of wealth is, surprisingly, the weather.
You see, demand spikes for certain commodities rely on what the weather is doing. If the summer is excruciatingly hot, for example, you’ll see electricity use rise as people crank up their air conditioners. As demand moves higher, utility companies are rewarded with more revenue.
A cold winter, too, causes demand spikes in commodities. And according to The Farmers’ Almanac (which has been right about 80 percent of the time), the coming winter is expected to be one of the coldest on record.
As the winter weather forces homeowners to bundle up and buy more natural gas to heat their homes, you can expect natural gas prices to move higher. And as those prices move higher, homeowners will have less money to spend on everything else, including holiday gifts.
One of the best ways to play this situation is to buy shares of Chesapeake Energy (CHK), which moves higher with the price of natural gas. Also, steer clear of buying retailers like Target (TGT) until spring.
[Ed. Note: Changes in the weather may reveal opportunities for you to profit. But there are other patterns you can follow that could put you on the path to more wealth than you can imagine. Get the details here.]
Similar Articles:
- Taking Advantage of Skyrocketing Demand for Agricultural Products – Agricultural products, including corn, wheat, and soybeans, are absolute necessities for human exist…
- Edging Away From the Cliff – Banks are tightening lending standards to businesses and would-be homeowners. But not to individuals…
- A Common Misconception About Winter – It’s a common misconception that the Earth is farther away from the sun during the winter months. We…
- It’s Time to Invest in Oil Again! – I told my readers to short oil when it was at $120 per barrel on April 23, 2008. I was a little earl…
- No Relief in Sight for Rising Food Prices – Food prices are rising as fast as, if not faster than, energy prices. And it doesn’t look like consu…
- The “S” Word – Investing During Stagflation – The financial press is a-buzz with talk about “stagflation.” But you won’t know how to handle the hy…
- Worth Their Weight in Gold – Everyone’s heard about oil going over $100 a barrel recently. Getting less publicity is the dramatic…