Times are tough so go with Wal-Mart
Ted Gottsegen (May 27th, 2008) Writes:
Calgon, Current Market News, Grocery Prices, money, nyse, Poor People, Slogan, Stagflation, Stocks to Watch, Wal Mart
Ted Gottsegen (May 27th, 2008) Writes:
Richard Shaw (May 8th, 2008) Writes:
Everybody knows there is some kind of food crisis. Grocery prices are painful. Wal-Mart has rationed rice purchases. Mexico has had tortilla riots due to corn prices. Rice riots have occurred Asia. China introduced laws prohibiting conversion of human food crops to fuel.
However, who would have predicted a 5 standard deviation price move for an index of 60 foods, or a 16 standard deviation move in rice prices. No, that is not a typo. Bloomberg today reported a UN Food Crisis study and related price charts revealing this food Black Swan.
At the core of the definition of Black Swan is an unpredictable and unexpected price move that is way off the chart in terms of standard deviations from the mean.
Since 3 standard deviations theoretically encompasses 99.7% of all observations, 5 to 16 standard deviations is a shocker.
We’ll have to rely on businesses and
...