Some thoughts on unpredictable weather and oil price.

[FunkyPeach]

We have all heard about QE2, the last train ...

I have some thoughts .... in view of the unpredictable weather, chances are that harvest will be poor. I wonder if that will affect any particular type of stock ?

For instances, things like due to poor weather, harvest of vegetables will be poor. Therefore, prices will increase and therefore affects the price of the stock. (cos they can sell things at a higher price, they made more profit or 'cos their cost increase tremendously, therefore their profit decrease.)

Also in view of the increasing price for oil, will there be stocks that will increase along side with it ? (I had been looking at China Aviation Oil, but I'm not able to see the correlation as yet.)

[Dennis Ng]

We have all heard about QE2, the last train ...

I have some thoughts .... in view of the unpredictable weather, chances are that harvest will be poor. I wonder if that will affect any particular type of stock ?

For instances, things like due to poor weather, harvest of vegetables will be poor. Therefore, prices will increase and therefore affects the price of the stock. (cos they can sell things at a higher price, they made more profit or 'cos their cost increase tremendously, therefore their profit decrease.)

Also in view of the increasing price for oil, will there be stocks that will increase along side with it ? (I had been looking at China Aviation Oil, but I'm not able to see the correlation as yet.)

Hi FunkyPeach,
yes, I think in year 2011, it is likely for Oil prices to rise to about US$100.

For China Aviation Oil, if I'm not wrong, their business model is on a "cost + margin" basis, so unless they take a Trading position in Oil, they are unlikely to make more money becos of rising oil prices.

[Ax]

in 2010.. i had read countless of freaky weather all around the world..and ever surging commodity prices... they seems to be reinforcing each other.

seems that things are getting more and more expensive each CNY.... and there doesnt seem to be any relief in sight...

Oil seems to be breaching US$100/barrel soon..

All seems to be in line with what Jim Rogers have been advocating... Rising commodity prices?