Gyroscopic Investing

Well, frugal's trading diary is not the thrill-a-minute, financial tour de force that I had hoped it would be.
I won't be doing much interesting trading either, as my money is tied up and I cannot devote any to individual stocks. But, it's fun to do virtual trading.

This is not a global warming theory thread. It's just that it's 95F outside, and that will be a common temp for the rest of the week. It's got me thinking- if you believe heat and extreme weather are going to continue to get worse, how would you speculate on that?

Finally, a piece of trivia: modern air conditioning was invented in Buffalo, NY!

Invest in manufacturers of A/C units?

Seriously, how about companies selling whole-house, gas-powered generators.  A power outage in 100 degree heat is no joke, and is likely to become increasingly common, because power companies can't keep up with the rise in demand (population + house size/increasing incidence of McMansions + more heat waves).  Along those same lines we have solar power installations.  They're crazy expensive now but are gradually becoming cheaper due to technology improvements and increases in volume.  I'm especially waiting to see what happens with solar film technology that turns a window into a power generator.  Imagine a power plant disguised as a skyscraper!!

Also geothermal construction for new homes, green rooftops, etc.... 

For what it's worth: here in Texas (well, central Texas anyway) it's been quite a mild and rainy summer.  Very different from the absolute scorchers we usually get.  I keep hearing about a heat wave but I sure don't see it!

So it may be more a case of displaced heat than additional heat.

Power companies and large agricultural industries use weather futures to hedge their operations.

I don't know what the mechanics of investing in them are, but if you could get access to the markets, then it seems like a very direct method of making the type of speculation you are referring to.

http://en.wikipedia.org/wiki/Weather_derivative

Mark Leavy wrote: Power companies and large agricultural industries use weather futures to hedge their operations.
...

I was thinking about power companies, too, but had no idea about weather futures.
Thanks for that link.

I didn't have time yet to open the trading account. Also my force is decreasing, let's see...


But, the way you are puting the trading for sure is not mine.

Don't think it is possible to make trading by that approach.

Regards!

frugal wrote:Also my force is decreasing, let's see...

They have pills for that now.

Natural gas pipeline companies.  More electricity demand with more and more opposition to coal-generated electricity = good market for natural gas transportation, even if the cost of natural gas itself remains low.