Every year when the forecasts for the hurricane season are issued, there have been a spate of articles on implications for investors. This year was no exception. USA Today reported that U.S. natural gas prices jumped 3% on the basis of a forecast for an active hurricane season in 2013. It is also common to read that companies are attributing poor earnings to unusual weather. Continue reading
Guest Blog by Kip Robbins, CFA, Zacks.com.
This past Sunday it was 71 degrees and dry in Chicago. If you’ve ever lived here in November, you know that’s an anomaly. At this time of year, it’s usually 44 and wet. I felt so warm, I decided to have a glass of lemonade which is usually reserved mostly as a summer treat. As I sat on my porch enjoying the day with my beverage, it reminded me of the tale of two lemonade entrepreneurs.
The story itself is a little long, but here’s the summary.
There are two businessmen (Bill & Ted) that decide to setup lemonade stands. Bill does everything with a just-in-time approach: buying only the amount of supplies and inventory he needs for each day. Ted decides to buy everything for 100 days of lemonade sales up front, including a brand new stand. Continue reading