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9781118147214

Extreme Weather and The Financial Markets Opportunities in Commodities and Futures

by
  • ISBN13:

    9781118147214

  • ISBN10:

    1118147219

  • Format: Hardcover
  • Copyright: 2012-01-18
  • Publisher: Wiley
  • Purchase Benefits
List Price: $60.00
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Summary

There are a sizable number of cynics in the world who do not believe that global climate change is occurring. The beauty of it, from an investor's standpoint, is that it doesn't really matter because we already have ample extreme climate events that will impact the stock market. To the extent that the environmental scientists are correct and the global climate does in fact change and gets even more frequent and powerful, the more investment opportunities we have. Every investment idea in this book will work under today's global climate condition and will get even more lucrative if global climate change continues.

Author Biography

Lawrence J. Oxley, an acclaimed author, initially received his degree in materials engineering in 1991 from the College of Engineering at Rutgers University and later received an MBA from Penn State University in 2000 focusing on finance. In 2004, he became a CFA charter holder. He currently holds the position of Director, Global Research, at the MetLife Insurance Company, with a focus on the basic materials sectors (i.e., chemicals, metals, mining, and forest products).

Table of Contents

Preface xi

Acknowledgments xiii

CHAPTER 1 Commodities and Their Current Stories 1

Jackpot Commodities 5

Neutral Commodities 26

Big Problem Commodities 37

Other Limited Opportunity Commodities 40

CHAPTER 2 Where to Invest: Stocks, Bonds, or Futures? 41

CHAPTER 3 Global Climate Shock Number One: Excess Snow and Ice 51

Salt 51

Snow Blowers 53

CHAPTER 4 Global Climate Shock Number Two: Flooding Mines 55

Metallurgical ("Met") Coal 56

Iron Ore 59

Copper 62

Silver 64

Aluminum 66

Nickel 68

Platinum 71

Palladium 75

Rare Earth Elements 78

Potash 80

Mining Equipment Makers 82

CHAPTER 5 Global Climate Shock Number Three: Farmland Droughts, Floods, and Frost 87

Sugar 88

Coffee 89

Cotton 90

Cocoa 91

Corn 92

Soybeans 93

Wheat 93

Oranges 94

Tying Together All of the Agricultural Commodities 95

Fertilizers 103

Seeds and Agricultural Chemicals 105

Farmland Equipment Makers 108

CHAPTER 6 Global Climate Shock Number Four: Hurricanes and Tornadoes 111

Independent Natural Gas Producers 111

Oil 117

Remaining Stocks to Benefit in Widespread Hurricanes 119

CHAPTER 7 Global Climate Shock Number Five: Drought-Induced Timberland Fires 123

CHAPTER 8 Real-Life Examples: Execution, Results, and Timing 125

Hurricane Katrina Example 125

Floods in Eastern Australia Example 128

Russian Drought Example 130

Blizzards in Northeastern United States Example 132

Cocoa Bean Supply Shock in Early 2011 133

A Word on Corn 135

The Rules of Extreme Weather–Based Investing 136

CHAPTER 9 Playing Both Sides of the Coin 145

Met Coal Example 147

Iron Ore Example 148

Copper Example 149

Farmland Droughts/Floods Example 149

Additional Pair Trades 150

CHAPTER 10 Basic Principles of Commodity Investing 155

Basic Supply and Demand 156

Understanding the Mathematics of Stock Prices and Cycles 157

Secular Rotation 160

Fundamental Rules to Live by with Commodity Investing 160

CHAPTER 11 Opportunities in the Bond Market 165

Opportunities in the Municipal Bond Market 178

CHAPTER 12 Opportunities in the Foreign Currency Exchange Market 181

Canadian Dollar 183

Australian Dollar 186

Other Commodity Currencies 187

CHAPTER 13 Basic Principles of Futures Market Investing 191

Exchange-Traded Funds 197

Final Thoughts 199

About the Author 201

Index 203

Supplemental Materials

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