Investment Basics

The Energy sector has two good things going for it this year if you're looking at investing money somewhere: bad weather & bad politics.

Most people are probably acutely aware of both of these factors, but here's how they are likely to positively impact the energy sector this year.

How Volcanoes Erupting in Russia Impact Where You Should BeInvesting Money

According to Evelyn Browning Garriss of The Browning Newsletter, one of the most acclaimed, accurate and sought after forecasters on earth, we are currently experiencing lots of volcanic activity in the north pacific, especially in Russia near Alaska with 6 volcanoes steaming or erupting. One of these volcanoes is actually spewing some debris into the stratosphere where it will continue to linger for several months. This volcanic debris high up in the atmosphere blocks out incoming sunlight which cools temperatures, resulting in changes to air pressure which changes wind directions and wind patterns.

There's a strong wind that blows around the arctic area - the arctic oscillation - normally pins up the cold arctic air in the arctic region when winds are strong. But when the winds are weak due to the change in air pressure, the cold air escapes and goes south which is exactly what has happened. Typically when there are some large volcanic eruptions near that arctic region, you see the arctic oscillation weaken and cold air escapes down south which we've seen throughout this winter.

Consider Investing Money in the Energy sector:

This affects the whole world. Beijing for example had the worst snowfall in 60 years (people were even dying from the cold in India) due to these volcanic eruptions. The resulting shifts in weather patterns has created a drought in the southern regions preventing their hydro-electricity from being able to function. All these factors only increase demand (for energy) as China now needs to import even more coal yet the coal mines in Queensland, Australia (where they import their coal from) are washed over from the massive floods, causing supply to plummet, thereby further raising prices.

Therefore, one would expect prices to rise across the energy sector from both the increase in demand (colder temperatures require more energy to increase temperature) and shortages of supply (due to peak oil, the drilling moratoriums, etc). It might be wise to start investing money into this sector, whether that be oil companies, natural gas companies, alternative energy companies or other such companies whose stock price would be affected by these changing market conditions.

Who would have thought an erupting volcano in Russia would have such an impact around the world regarding investing money?

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