Meat prices and the sequester and your money
Here are two easy predictions for you. The first is about meat prices. This year's drought cut crop production over much of the country and the reduced output from the fields has the effect of driving animal feeds prices up. As the prices go up more and more animals are sent to slaughter and cold storage to avoid high feeding costs and much of it goes directly to market too. The addition of more meat to the market drives prices down. This effect is only temporary though because when stores have been exhausted reduced animal stocks soon drive prices back up. So that's what you get with a drought like we have just had; first prices go down, then they go back up. If you know its coming you can take advantage of it to some extent.
Prediction two is about common stock prices. Looming on the political horizon, soon after the election, is the sequester. On the first of the year Federal funding for everything is going to be slashed to an extent that will drive the country back into depression. The only thing that will stop this from happening will be action by the Congress. Good luck with that. As the day of reckoning comes near the stock market will drop like a stone; down, down, down, down. On the day the sequester is lifted, which has to happen, the market will soar. If you know its coming you can take advantage of it.
