Thursday, January 21, 2010

Profiting off temperature changes

These numbers are from the CME Group weather derivative white paper, where the temperature measures come from local airport weather stations. It looks like an average decline of 14% has occurred in 2009 with respect to the past 10 year average.

Going against the (global warming) crowd, and betting on a cooler summer would have resulted in some nice profit. Just like how all other markets have worked. It's tragic how much politics has gotten involved with weather research.

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