How to make money on the weather

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If you live in the U.S. or Canada (maybe except for those living in Phoenix, AZ) you definitely have noticed the early start to winter this year with very cold temperatures, colder than average for this time of year. Now the negatives to this are obvious, so I won’t even bother mentioning them. However, what if I told you that this awful weather could end up making you money? Would you be a little less angry at Mother Nature for freezing you before winter officially begins?

Well, it’s true. There are several examples of how to achieve this, but I will focus on two of them today. The first is orange juice. Orange juice futures are a commodity and are traded as such just like oil and many other every day essentials. If you would have invested in Orange juice futures a few months ago and sold them late last week, you have made a lot of money. The price of orange juice futures has increased a lot up until this week because of the extreme cold weather. Specifically, the thought was that oranges in Florida, which is the second largest grower of the citrus fruit in the world, would suffer huge damage to the crop due to freezing. It turned out that most of the oranges were spared and prices have since retreated.

The second way to make money on this terrible early winter weather is to invest in anything ski related. I am guessing that this is going to be one of the coldest and snowiest winters in years. That means that ski resorts will be humming and will not need to produce machine made snow which is costly and less enjoyable for most skiers. Investing in the resorts directly by purchasing stocks (after doing your due diligence research on each company, of course) is one way of doing this. The other is by investing in the makers and/or retailers of ski gear such as skis, ski goggles, etc… Again, this is only a viable option if you agree that this will be a very cold and snowy winter. It also only works if you believe other factors like the economy and tax policy will not be a hindrance to ski trips for people.

Obviously, predicting the weather is extremely difficult even for experts. However, I am just trying to find some positive to this awful weather and I can’t think of anything better to have as a positive than making money.