Ernesto Spooks Traders
For Immediate Release:
August 29, 2006
Contact: Ian Mathias 410-864-1652 imathias@agorafinancial.com
www.dailyreckoning.com – Investing in Ernesto: Katrina’s Legacy Spooks Traders
Baltimore, MD: One year to the day after the Gulf Coast was devastated by Hurricane Katrina, memories of gas “gouging” and other commodity spikes have inspired many Americans to invest in Hurricane Ernesto. Speculators around the nation have been betting on Ernesto to have a similar effect on gas and oil prices, but many experienced investors are steering clear of last-minute energy buys.
“Oil and gas traders are especially skittish and too fast to react to the news of a hurricane,” said Kevin Kerr, a commodities expert and editor of Resource Trader Alert. “Ernesto could have very little effect on energy prices, or it could send them through the roof,” said Kerr. “It's important to understand the psychology of the markets as much as the mechanics. Since Ernesto is yet to even touch U.S. soil, there is no way of knowing just how bad it will be.”
Kerr cited Katrina’s drastic effect on energy prices as to why many predict oil and gas prices to skyrocket. “Katrina had a lasting effect on the psyche of commodities traders,” said Kerr. “Many were too quick to act upon hearing news of Ernesto’s arrival,” asserted Kerr, “and then too early to let their guard down and sell when Ernesto turned away from the oil-laden Gulf.”
“All of the best investments for the hurricane season,” claimed Kerr, “were made before Ernesto was on the map.” Orange juice, according to Kerr, will turn out to be one of the season’s most valuable commodities. “O.J. producers have had a terrible run all summer,” said Kerr. Increased harvesting cost, foul weather, rampant crop disease, and a fleeting immigrant population have driven orange juice prices to withering heights. Kerr urged his Resource Trader Alert readers to buy O.J. calls in June, and Ernesto is currently poised to drive prices even higher.
“Last minute energy trades are more of a knee-jerk reaction and less of an educated play,” said Kerr. “All investing, commodities trading included, requires a lot of homework and even more patience.”
Kevin Kerr is the editor of Resource Trader Alert and a frequent contributor to The Daily Reckoning. His unparalleled expertise in futures and commodities has made him a regular contributor to news outlets like CNN, FOX News, CBS Evening News, Nightly Business Report and many others.
A product of Agora Financial, The Daily Reckoning is written by New York Times best-selling authors, Bill Bonner and Addison Wiggin. The Daily Reckoning is a daily, free e-letter that weaves information about the financial world, investing, and everyday life into an educational and entertaining format that has been engaging readers for over seven years.
SOURCE: https://www.dailyreckoning.com/
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