Misery is profitable

Friday, 7:55 pm

By Kate

Nov

17

2006

In the world of high finance, it’s probably not any secret that investors can make a bundle off the general public’s misery or that disappointment ensues when it looks as if the general public isn’t going to be miserable enough. But I don’t think the point is often stated as bluntly as this opening blurb in a Market Watch article:

HOUSTON (MarketWatch)—Energy shares slumped Thursday after government data revealed a surprise buildup in U.S. natural-gas supplies, triggering worries that this winter’s heating demand would not be enough to eat through sizable stockpiles and sending crude prices to a 17-month low.

Well, if that’s all they have to be worried about....

So, I guess the weather isn’t cooperating and we’re not going to gobble up precious energy at fast enough rates to create shortages and high prices. I wonder what investors will be worried about when we just plain run out.