Dave Gonigam

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Market Expert Urges Investors to Prepare for Hurricanes

For Immediate Release:
June 9, 2006
Contact:  Ian Mathias, 410-864-1652, imathias@agorafinancial.com
 
www.dailyreckoning.com:  Market Expert Urges Investors to Prepare for Hurricanes
 
Calm weather at the start of the 2006 hurricane season creates unique commodities climate.
 
Baltimore, MD:  One year ago today, Tropical Storm Arlene, the first of 2005, began her march toward the U.S. In contrast, the first official week of the 2006 hurricane season has come and gone with little activity. As East Coast homeowners sigh in relief, one commodities expert advises the rest of the nation to invest quickly before they feel the sting of anticipated foul weather.
 
“Last year’s disastrous Gulf Coast storms triggered huge price spikes in several commodity markets,” said Kevin Kerr, an authority on commodity trading and a contributor to The Daily Reckoning. Since hurricanes seem destined to strike again in the coming months, Kerr is urging traders to take advantage of pre-storm market prices. “Since no early storms have approached the Gulf Coast, many of the hurricane-sensitive commodity markets are trading well below last season’s levels.”
 
A Wall Street veteran, Kerr advises to get a head start and “buy selected commodity options during the current weakness in these markets.” While many investors gamble by buying in after the hurricanes have begun striking the U.S., Kerr proposes a less risky alternative. “As we enter the hurricane season, we hope to sell into the early anticipatory rallies, even before the first winds start to really hit.” 
 
Kerr tells his investors to pay special attention to energy markets. “The Gulf Coast is the heart of oil and gas production and transport,” said Kerr, “17% of production is still knocked out because of last year’s storms, even before we begin this season. Any new disruptions would almost certainly boost the prices of all energy markets: natural gas and crude oil, as well as unleaded gas and heating oil.”

While many shy away from investing in a potentially volatile market, Kerr refers to his recommendations as simple “hurricane insurance.” Foul weather will cause commodities like sugar, orange juice, gas, and oil to surge. Kerr believes that smart investors will purchase these resources before supply sinks and demand soars. “We are not hoping for hurricanes,” said Kerr, “we are merely preparing for the possibility.”
 
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.
 
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