investment logic 1: wave pattern
Observations:
- Oil doubled in about two years leading up to last year, and prices are extremely strong
- The price of oil has affected (impacted for those of you in public scrools) the price of corn.
- The futures market has corn priced at $2.41/bu for July and $2.935/bu for next July.
Hypothesis:
- Do cows eat corn?
- If so, the wave should continue on down the line of commodities.
Actually, cows do eat corn. But when corn gets expensive, they'll just eat something else.
Conclusion:
- good idea, but no practical application
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