Wednesday, January 12, 2011

Cooler Temperature and Investment

There was a news item in The Star today about cooler temperature. The report didn't give any specific reason for the out of the ordinary event. Well, if you subscribe to John Mauldin newsletter (free of charge), then you will know that the erratic weather pattern across the world (i.e. freezing winter in Europe and massive flood in Australia) is due to the volcanic activity in the Kamchatka Peninsula. Volcanic ash always have a cooling effect as they block out the sun ray. What does this means? The immediate effect will be lower crop yield (less sunshine, less growth). The other will be the weather.

As speculators, we should be anticipating higher prices for agriculture products. So, buy stock that is related to this sector.

I cannot find the original post from John Mauldin, but this blog has the article.

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