The Big Short Investor Is Stockpiling This Commodity ⎯ Should You?

The Big Short Investor Is Stockpiling This Commodity ⎯ Should You?

Posted On September 22, 2023 11:01 am

The commodities market looks poised for growth. There is economic uncertainty, rising geopolitical tensions, as well as oil and natural gas prices rising ever higher.

Whether you fancy yourself a commodities investor or not, there is clearly something to investing in some of the most important commodities in the market, even if just used as a vehicle to park some of your money.

However, despite the popularity of commodities like gold, silver, or even oil, there is one commodity we simply cannot live without, water.

Investing in water, or as it has been referred to, blue gold, is an increasingly popular investment option as many become fearful about our ability to make sure mankind has enough to support literally everything we do.

It is often thrown around that without this or that, societies around the world would come to a screeching halt, but when it comes to water, there truly are no bones about it.

Most don’t quite understand how much water we consume on a daily basis, many of us assume it is a never ending resource simply because the planet is over 70% water. Let’s put it into perspective.

In reference to a cup of coffee, which many Americans need to get their day started, it takes about 36 gallons of water to get from the bush to the table. When it comes to the food we eat, like a steak for example, it’s much more costly in terms of the amount of water needed.

Around 4,000 gallons of water to produce the meat we consume, from just one large cow. With all of that, plus the water we use to drink or shower, we consume a ton of water.

Even some of the most well-known and respected investors are sounding the alarm about investing in blue gold. Michael Burry, the famed investor who famously predicted the financial collapse of 2008 is one of those who is positioning himself to take advantage of the possible water crisis.

So, how can we align ourselves with investors such as Michael to invest in the world’s most valuable resource? Easy, when you have a tool such as…

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About author

Steve Smith

Steve Smith have been involved in all facets of the investment industry in a variety of roles ranging from speculator, educator, manager and advisor. This has taken him from the trading floors of Chicago to hedge funds on Wall Street to the world online. From 1987 to 1996, he served as a market maker at the Chicago Board of Options Exchange (CBOE) and Chicago Board of Trade (CBOT). From 1997 to 2007, he was a Senior Columnist and Managing Editor for TheStreet.com, handling their Option Alert and Short Report newsletters. The Option Alert was awarded the MIN “best business newsletter” in 2006. From 2009 to 2013, Smith was a Senior Columnist and Managing Editor for Minyanville’s OptionSmith newsletter, as well as a Risk Manager Consultant for New Vernon Capital LLC. Smith acted as an advisor to build models and option strategies to reduce portfolio exposure and enhance returns for the four main funds. Since 2015, he has worked for Adam Mesh Trading Group. There, he has managed Options360 and Earning 360, been co-leader of Option Academy, and contributed to The Option Specialist website.