Long $WATER

Happy Friday! Welcome to the first ever Always Invested email.

Seriously thanks for being here, you will go down in history as one of the originals. I might have something special in the future for those who sign up first…our secret.

Let’s kick this off with one of my all time favorite quotes.

“The two most powerful warriors are time and patience.” - Leo Tolstoy (War and Peace)

December 6th, 2020 the day water futures started trading. So, is it time to stock the tubs? Not quite, the apocalypse isn’t coming yet that’s for 2021.

Water is now traded alongside oil, gold, beef, grains, and other commodities. For those who don’t know what commodities are here is a quick lesson.

Commodities - “Basic goods used in commerce that is interchangeable with other goods of the same type” (Investopedia, click “commodities” to read more).

The water futures being traded are based around the water availability in California. The state has suffered one of the worst years in terms of water scarcity due to wild fires that have burned over 4 million acres in 2020. Drought and population growth are also other areas of concern that have contributed to the shortage.

The main purpose of the contracts is for major water consumers to limit risk and improve supply and demand. Prices of the CME Group Inc’s January 2021 contract were $496 per acre foot on Monday.

Conclusion? Don’t go selling all of your $PEP and $KO stocks yet.

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Now what you all came here for.

Ahh the Airbnb IPO, what a fun day. $ABNB was set to open around $68 dollars per share but instead opened at $146 and closed at $144.71, up 112.8%.

P.S. if you enjoy light hearted content focused on the stock market @RampCapitalLLC is a must follow.