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126: How Geospatial Data Can Inform Investing

The Bid

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The Effect of Extreme Temperatures on Economic Activity

Growth in outdoor related industries tended to drop during periods of abnormal amounts of extreme temperatures, either extreme cold or extreme heat. This rebound effect is something that is often underappreciated in the market and it creates an investment opportunity. For a macro investor, you might invest differently in European equities versus other opportunities during periods of extreme weather but then explore getting back into those positions after temperatures normalize.

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