Matt Levine’s Money Stuff: Weather Prediction Prediction

Weather

We talk sometimes around here about hedge funds getting into weather forecasting. Weather affects financial markets (notably commodities prices), and it is hard but not impossible to predict; it is a problem to which you can apply skill and technology. If you are very good at predicting the weather, one particularly lucrative place to put your skills to work is in commodities derivatives trading.

I wrote about this last year:

The nicest thing you can say about the financial industry is that it lavishly rewards correct understanding of the world. If you know a thing, and other people ...